Des Moines, IA
From the New Iowa Blog
As Congress continues to move forward with the 2009 economic stimulus package, a number of think tanks and lobbying groups are offering their views on what makes sense both for economic stimulus, but also for building a more competitive American economy over the long term.
The Information Technology and Innovation Foundation makes the case for “stim-novation,” by investing an additional $20 billion in the nation’s research infrastructure. Their new study suggests that these Federal dollars should be invested in both research and equipment.
Meanwhile, the National Business Incubation Association suggests that Federal support for incubators should be in the mix, as these facilities help business create jobs at a fast pace.
The Urban Institute has asked its in-house roster of experts to comment on key parts of the current stimulus plans. They offer a host of insights. For example, the Institute’s Brett Theodos argues that the US Small Business Administration (SBA) needs to consider new approaches to its 7(a) loan program. As currently managed, the loan program has a very limited impact on generating new jobs. He contends that SBA should identify new ways to ensure that these loans are targeting businesses with high growth potential.
A few small business lobbying groups have already voiced their opinions. “More can and should be done,” National Small Business Association President Todd McCracken said in an email. “If Congress and President Obama are concerned about unemployment, they ought to look no further than the small-business community’s ability to create jobs and seriously consider more targeted proposals such as ending the self-employment tax on health insurance that only small businesses are forced to pay.”
The National Federation of Independent Business says the legislation “provides limited relief or incentives for small businesses and instead spends massive amounts of taxpayer dollars on programs that have little to no connection to economic growth or job creation.” They’d like to see a six-month payroll tax holiday included in the bill. That, they say, would “immediately put money back into the hands of consumers while simultaneously decreasing the cost of labor paid by employers. This is a sensible provision that will provide real help to small business owners.”
The Small Business and Entrepreneurship Council says the bill just doesn’t offer enough for small business. “The ‘economic stimulus’ measure that passed the House includes too much spending that has little to do with helping the economy, and not enough for small business owners and entrepreneurs to help them survive, create jobs and grow their firms. We fear this will do little to help the economy,” the organization says in a statement. “Small business owners are looking for tax certainty, relief and incentives,” the SBE Council adds.
Friends, do you believe the government is looking out for your business? What kinds of tax breaks and incentives would help your business through these tough times?