Small Business Bill Passed With Two Senate Republicans Who Dropped Out
Congress surprised everybody by passing the small business bill. Everyone thought midterm elections in November were too early for anything to pass. Two Republican U.S. senators modified their thoughts and passed party lines to give Democrats the votes they necessary. This was in hope of getting re-elected. Thursday, U.S. Senate stopped fighting. They actually got to work and passed a small business bill. Credit is easier to access for many with the legislation that should also give tax relief to small businesses, allowing them to create more jobs. Now the plan will be going to the House to pass fast.
Small business lending and tax breaks
The small business bill that finally passed the Senate Thursday features the creation of a $30 billion lending fund directed to regional banks for small company lending. Republicans called the fund another taxpayer bailout like the Troubled Asset Relief Program. Many banks volunteered to work with the small business lending program, reports the Wall Street Journal. This is why it is different from TARP. The amount a financial institution is going to Use to increase small business lending is how the rates of interest for the banks are being determined. The small business bill also involves about $12 billion in business tax breaks, including an instant write-off of 50 percent for new equipment purchases in 2010 for all businesses. $500,000 will be the new amount of investment small businesses can spend in 2010 and 2011.
When retiring, senators can vote on principle rather than party
The House worked earlier this year on a bill. This plan was a different version of the small business bill. The National Federation of Independent Business and the U.S. Chamber of Commerce were both expected to support the plan. Of course, instead they have chosen to Use the legislation to weaken the health care reform law, reports the Los Angeles Times. Republicans filibustered the small business bill in July, demanding to add amendments unrelated to the objectives of the legislation. Within the U.S. Senate chamber, House members staged a sit-in at one point. This was done to protest the delays going on. Republicans George LeMieux of Florida and George Voinovich of Ohio are senators not seeking re-election who were the ones that changed their minds. Two independents joined the Democrats helping pass the bill. The measure passed 61-38 after the two Republicans joined.
Further reading
Wall Street Journal
online.wsj.com/article/SB10001424052748703440604575495882236157048.html
Los Angeles times
latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,,2992847.story
