Boosting the morale of entrepreneurs, the Obama Administration is making funding easy for business start-ups by introducing various Tax breaks and also making it easier for IPOs.
The idea behind the proposal is to make funding small businesses with start-up capital more attractive. By doing away with taxes on capital gains on investments this will happen easily. In addition, it would also increase the amount of money that will not need to be routed through SEC registration from $5 million a year to $50 million. This proposal is going to be part of Obama’s 2013 budget plan.
A few other highlights of the proposal
- Tax reduction on startup expenses
- A policy that will allow businesses to deduct cost of equipment and software
- Grow the Government small business investment program by $1 billion
Addressing The Associated Press, director of the White House National Economic Council, Gene Sperling said that the Obama administration is aware of how much small and new businesses drive job growth in the national economy; leveraging on these new business starters by certain federal supports like tax breaks is the most logical aspect that is being practiced.
Sperling further informed the AP, “Our small business agenda has a specific focus on removing the barriers that have for too long blocked startups and entrepreneurs from getting the financing they need to accelerate their growth and hiring.” While some welcomed the policy, some think making public funding by relaxing regulations would be prone to fraud.