President's economic plan vital for small business

Business Today

If our nation's economy is to return to full strength, America's small businesses will have to lead the way. That's because our nation's small businesses account for 99 percent of all employers and create three-quarters of all new jobs.

Congress is debating President Bush's economic package. The most obvious question is: will the president's plan help small businesses? The answer is a resounding "yes."

First, and most importantly, the plan puts the 2001 income tax cuts into full effect immediately. Given some 90 percent of businesses pay personal income taxes rather than corporate income taxes, this part of the plan immediately increases the bottom line for small businesses. In fact, the White House estimates that some 23 million small business owners would receive tax cuts averaging over $2,000 this year.

Second, the plan specifically target's small businesses for help by increasing the tax deduction for small business investment in equipment from $25,000 to $75,000.

Finally, by wiping out the double tax on dividends, the president's plan reduces the cost of capital and increases the funds available for small business investment.

This proposal, combined with the president's call for an end to the death tax, shows he understands that helping small businesses is the best way to invigorate the American economy and create jobs. Congress should get behind President Bush and pass his economic plan -- and keep his tax cuts intact.