Last week, CEO Roni Deutch posted an entry on her personal blog examining the tax proposals President Obama discussed in his recent Sate of the Union. You can find information about a few of the potential new tax laws below, but be sure to check out the full entry at The Tax Lady Blog.
Business Tax Break Extension
Small business tax incentives and the middle class were common themes in the President’s speech. One of the largest cut’s Obama mentioned during his speech was his plan to extend a set of tax breaks that will allow businesses to write off investments in equipment (such as tractors, wind turbines, solar panels, and computers) more quickly. The 50% bonus depreciation tax break would total $38 billion in savings in the 2010 alone, which would represent an estimated 13% of all corporate tax receipts expected this year.
Elimination of Capital Gains Taxes on Small Business Investment
“While we’re at it, let’s also eliminate all capital gains taxes on small business investment,” Obama explained. This is a pretty drastic change from his campaign promise of doubling capital gains taxes, but the majority of economists support his proposal.
$30 Billion for Community Banks
Another part of the President’s plan to help small business owners is to increase the amount of credit available to them. “I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat.”
Middle-Class Tax Cuts
The President asserted that his administration would extend middle-class tax cuts, but in a cleverly worded sentence said they would “not continue tax cuts for oil companies, investment fund managers, and those making over $250,000 a year.” This is an obvious reference of his intention to let the Bush tax cuts expire, which would essentially raise taxes on couples making over a quarter of a million dollars per year.