Will the small business bill be enough for small businesses?
As the weather turns cool and America faces a mid-tern election cycle in November, the question remains, which party is better for the economy? There is little doubt that the biggest topic in this year’s election is the economy.
So, is the Republican Party correct when it says President Obama’s policies are the reasons we are stuck in this recession? Or is it the Democrats who have the plan to get America moving in the right direction, if partisan politics didn’t stand in the way? To many moderates, both parties seem more concerned with winning elections rather than improving the situation Americans find themselves in.
We find another case study in the two-party system and its effects on the economy when we look at the current small business bill put forward by President Obama and waiting for Senate approval.
The bill currently stuck in the Senate authorizes the creation of a $30 billion lending fund. The Treasury Department would run the program, which would deliver cheap capital to community banks.
The idea is to stimulate community banks based on the theory that they do the bulk of lending to small businesses in their localities.
Other important areas of the bill would provide $12 billion of tax relief for small businesses between 2010 and 2020, based on an estimate from the Joint Committee on Taxation.
The bill also increases Small Business Administration loan limits and extends loan sweeteners through the end of 2010. It offers several tax cuts for small businesses, to both encourage investment and entrepreneurship.
The legislation also provides $1.5 billion in grants to state lending programs that can’t rely on depleted states for more cash. Critics of the bill say it doesn’t go far enough and won’t have a big enough affect on the economy to create jobs.
What do you think of the administration’s attempt to stimulate the economy? Is it too much or too little? What do you think are the underlying reasons for the stagnant economy?
