3 Things You Should Know About Small Business: Feb. 24
NEW YORK ( MainStreet) -- What's happening in small business today?
1. A corporate tax cut proposal is getting a look. President Barack Obama proposed overhauling the corporate tax code, mainly as an effort to get large businesses to keep their manufacturing -- and jobs -- on U.S. soil. In general, the plan seeks to reduce the corporate tax rate to 28% from 35%, eliminate accounting loopholes, improve transparency and simplify the code for small businesses, according to Inc.com.
Small businesses could see an eased tax burden and several incentives, including: doubling expensing to $1 million on company-related investments; doubling maximum gross receipts amount for cash accounting vs. accrual accounting; doubling the deduction for start-up expenses to $10,000; and expanding the health insurance tax credit for small businesses.
But the question remains as to whether a tax package such as this can get passed, especially in an election year. For small start-ups, the proposals don't really hit what matters to them: access to capital.
2. Businesses are coping with higher gas prices. Small businesses are being squeezed from every angle in this tough economy, and the recent surge in gas prices could put some businesses over the edge.
The Huffington Post spoke to a few companies coping with the surge in gas prices. With most businesses trying to avoid raising prices to the consumer, it's inspiring creativity in how to make up for the difference and more attentiveness to daily expenses.
3. The Air Force is taking on more small-business contracting. The U.S. Air Force is looking to boost how many contracts and sub-contracts go to small businesses, according to Federal News Radio . It's developing a series of metrics around small-business prime and sub-contracting and looking at a strategy to increase awards in total dollars and percentage of overall contracts.
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-- Written by Laurie Kulikowski in New York.
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