Small Business Tax Cuts and Tax Credits

In an effort to promote small businesses to began hiring again, President Obama is proposing new tax credits. Read the small business tax credits details below.

The United States is still reeling from a recession. One in ten Americans can’t find work. The fact is — Americans are standing in a very different place than we were just a year ago.

Last year, businesses were cutting 700 thousand jobs every month. The markets were plummeting, and many people feared another Great Depression.

However, today the White House has stopped the flood of job losses, they have stabilized the financial system, and American has avoided another Great Depression.

While the Recovery Act has created and/or saved 2 million jobs, this recession has cost the American people 7 million jobs. That’s why the Jobs Bill is so important. This Jobs Bill will help small businesses. President Obama is proposing what he believes is the best way to cut taxes while promoting hiring by small businesses; through a tax credit. For companies that add workers or increase salaries this year a tax credit maybe in store.

Now is the perfect time for this kind of incentive because the economy is growing, but businesses are still hesitant to start hiring again. Companies are recovering but not yet taking that next step and taking on additional full time workers.

Tax Credit Details

Here’s how the tax credit will work.

• Employers will get a tax credit of up to $5000 for each and every employee that they add in 2010
• Employers will get a tax break for increasing salaries in 2010 for employees making under $100,000

This new tax credit can cut taxes for over 1 million small businesses. It will give them an incentive to hire more people and a little extra money to pay higher wages or to expand work hours.

In order to get this incentive working quickly, employers would actually be able to receive this money every quarter, as opposed to waiting a whole year to see it benefit their taxes.

Promoting Small Business Via a Tax Credit

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