The Whitehouse has signaled a long overdue helping hand to small business America with Tax Breaks and Capital Gains Elimination for small businesses.
The problem with the media is that they deem it more important to keep highlighting Tiger Woods’ presumed infidelities than reporting on the important issues at hand, such as our economy and future of our civilization. Of course media understand infidelity much better than today’s economics and consequently people all know that cheating is bad. Well in relationships that is. In the economy that’s a totally different story. Last week that meant that a potentially game changing proposal from Obama went almost unnoticed. President Obama made a statement last week regarding eliminating all capital gains taxes on startup and small business investments. Combine this with the fact that the Whitehouse is finally bashing the big bankers and their non-lending record and we may have hopes that small business owners are now getting some deserved attention.
There are many ways that this should be good for small business and for the American economy, and for private company investing. Here are just three:
1. This one is called It’s only Fair. It has been a very tough couple of years for startups and small businesses. Unlike automakers and big banks, the nation’s real entrepreneurs were left to completely fend for themselves.
They have done this with stoicism, with grace, and with the simple coda that nothing is immutable to hard work.
Lending them a helping hand is just fair. And if, as by miracle, Congress follows the President’s lead and makes this proposal law (and given how lower capital gains has been on the Republican’s wishlist since forever, there is a strong probability that it will), and it just may unleash a growing investment bull market across the entrepreneurial landscape.
Insiders anticipate that this tax break will become a catalyst for capital moving from ‘do-nothing’ and ‘know-nothing’ safety investments into productive ones like technology startups and small businesses.
2. Startup and Small Business Tax Breaks Create Innovation. The proposed capital gains tax break, when coupled with the proposed tax credits for small business hiring and investment, will provide a much-needed boost to entrepreneurial risk-taking and innovation.
This expanding information age was created by “guys in garages.” Gates and Allen, Jobs and Wozniak, Page and Brin and their likes.
There is no doubt in my mind that the big ideas of the coming “Energy Age” – in battery technology, in cold fusion, in high efficiency combustion engine technology like HHO, in greenhouse gas reversal, in solar and wind energies, will absolutely NOT come from the federal government or big business. It never does and it never will, because their focus is not unlimited time invested personal perseverance. Neither will of course Nano Technology and further application development of artificial intelligence.
The most creative people in the world do NOT want to work within any kind of bureaucracy. Rather, they will come from the yet to-be-founded startup, that fluid and flexible small business about to break-out. They’re pioneers, not consolidators.
Anything that makes it easier for these innovators to have cheaper access to capital – which a waiver of the tax on capital gains will effect – is a BIG positive.
3. When everything is said and done in this timespan of changing economies and global order, history will show that the central economic and investment issue of our age was not inflation, nor big bank bailouts or health care reform, nor political ideologies on both sides of the fence, liberal or conservative.
All those issues are irrelevant verus the issue of what can and needs to be done to spur on the “best and brightest” among us to be more creative, entrepreneurial and more successful.
Why do I think that? Because entrepreneurs create the innovations, that create the infrastructure that create the jobs that create the wealth that create the option and opportunities to chose the way of life we want.
That’s why the proposed capital gains tax break is vital as it signals both a direct and indirect stimulus effect of major importance.
For the investor out there, it signals another option than the safety of gold or the risk of Wall Street. And guess what?
They know that if they do it right, they will profit far more on their money that they could ever imagine.
This is called doing well while doing good. And believe me dancing through life is much more enjoyable than sitting it out on the sidelines.
Leave a Comment
You must be logged in to post a comment.
Well said. If this economy is going to turn around then Washington must realize that it will be small business that does it. In order for that to happen the financial world must open up to small business and make the funds available to them for start up's and expansion.