Legislation Stalled on Capitol Hill
Democrats and Republicans in the Senate each lost once last week--entrepreneurs and small business owners lost twice.
Despite a push last week from Majority Leader Harry Reid, the Small Business Jobs and Tax Relief Act (S. 2237) didn't pass the Republican filibuster and is slated for further debate. It calls for a 10 percent tax credit to firms who hire or increase payroll. Meanwhile, a Republican plan to give businesses with fewer than 500 employees a 20 percent tax cut was soundly defeated 73-24.
Despite the setback for S. 2237, Sen. Mary Landrieu, chair of the Senate Committee on Small Business and Entrepreneurship, announced her plans to introduce the provisions of her amendment to it as a stand-alone bill. Those provisions are:
- Extension of the 100% Exclusion from Capital Gains of Gain From Investment In Qualified Small Business Stock;
- Extension of the Increased Deduction for Start-Up Expenditures;
- Extension of the 5-Year Holding Period For S-Corps Built-In Gains;
- Extension of the 5-Year Carryback of the General Business Tax Credit;
- Extension of an Enhanced Sec. 179 Provision ($500,000 with the $2,000,000 phaseout) that includes up to $250,000 for certain improvements to real property.
Stay tuned for updates.