Thursday, February 04, 2010

Survey/Health Cost/$5000 Tax Credit/ Senate Jobs Bill 2869

We are getting close to 300 responses to our survey. Thank you to all that have completed the survey and the associations that have sent this to their members. I also want to thank those of you that have forwarded to your colleagues.

If you haven’t completed please do so and forward.

You may have seen in the paper this morning that health care cost for 2009 have increased to 17.3% of GNP and this represents an increase over previous years. I can’t think of a stronger argument that we need meaningful health reform in Washington and it is critical that we end partisan bickering between the Democrats and Republicans and get something meaningful done not just for small business but the future of our country.

I have mentioned that the President has recommended a $5000 tax credit for businesses with a net increase in employment. Many of you have indicated to me that you didn’t understand how this works. Briefly you will get your credit on a quarterly basis by reducing what you pay in FICA taxes. It is not subtracted from profits. Please note that you take the credit on a quarterly basis after you have paid an employee $7000.

If you would like a more complete description of the credits please let me know.

Small Business California is working hard to get additional funding for the SBA 7a and 504 loans to continue the increased guarantees, the waiver of SBA fees on those loans and the increase to $5 million of loans the SBA can make. Time is running short as the current funding will run out the end of this month.

What I am hearing is that Senator Reid is talking about doing a number of Jobs bills starting with the provisions that have the best chance of passing. We are very hopeful that we can get S2869 into the initial bill and get it passed before the end of the month but quite frankly this appears like it will be very difficult and the SBA will run out of money.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

No comments: