Obama Administration Weighing Tax Incentives
Several news sources reported at the end of last week that the Obama team is seriously weighing a package of business tax breaks worth hundreds of billions of dollars with the hopes of boosting employment. The Washington Post
reported that under consideration are a temporary payroll-tax holiday and a permanent extension of the now-expired research and-development tax credit.Politico
reported that some sources confirm that a second stimulus package is not part of the discussions. This is probably good news for entrepreneurs. A Kauffman survey
of entrepreneurs revealed that only 33 percent of entrepreneurs supported the stimulus.
We look forward to reporting on the policy path that the Administration will take. With mid-term elections approaching, we should hear some more news about this soon. Taxes influence decisions regarding hiring, financing structure, ownership structure, and even the very decision to launch a business. Given these incentive effects, it is important that this Administration question whether our taxes are helping or hindering entrepreneurially-driven economic growth.