WASHINGTON (Sept. 9, 2010) — The National Federation of Independent Business (NFIB) is downplaying President Barack Obama's proposed business tax incentives, which he outlined in a speech yesterday in Cleveland, saying they will have a “limited impact” on job creation by small businesses.
“Poor sales and a lack of confidence in the economy and in Washington continue to keep small business owners from creating new jobs,” said NFIB Tax Counsel Bill Rys in a prepared statement. “And while the increased expensing limits for business investments may help some businesses, most small businesses aren't making expenditures that exceed the current $250,000 expensing limits.”
During his speech at Cuyahoga Community College in the Cleveland suburb of Parma, President Obama called on Congress to pass new tax breaks that would allow businesses to write off new capital investments entirely through 2011, according to various news media.
“What small businesses need right now is more customers and certainty over their taxes,” Mr. Rys said. “Washington should help small businesses by extending all of the individual income tax rates and by passing meaningful estate tax relief legislation. It is extremely difficult for small business owners to plan for future investments or new hires when they are unsure what their tax liability will be next year.
The NFIB also called on Congress to repeal the burdensome 1099 reporting requirements passed in the healthcare law.
Additionally, the NFIB recently commented on the nation's August job statistics. “Overall, the job creation picture is still bleak. Weak sales and uncertainty about the future continue to hold back any commitments to growth, hiring or capital spending. Consumer and business-owner sentiment is in the dumpster, and until this changes, small businesses will remain unwilling to spend or hire,” noted William Dunkelberg, chief economist for the NFIB.