President Obama has a lot of things included in his budget proposal. One part of it that might bring some good news to small business owners is about the tax credit proposed for them. The President is proposing that small businesses which hired workers last year or gave raises should be given some tax breaks.
His plan also calls for streamlining the process for application required for small business owners. It also aims to add lenders that can work with the SBA or the Small Business Administration.
According to an article by Joyce M. Rosenberg for the The Miami Herald, “The tax credit, aimed at giving small businesses an incentive to hire and raise employees’ pay, would be for companies that paid less than $20 million in wages in 2012. They could get a one-time credit of 10 percent for the amount paid to new workers and in raises to current workers. There would be a limit of $5 million on the credit.”
The proposal is set to affect the small business sector in many ways. Though the budget proposal seems to have a lot of good points to it, it is still drawing a lot of fire from critics. There is a mixed reception for the budget right now.
You can check out the full article here.