Daily Tax Update - February 1, 2011: Republicans Lukewarm To Obama's "Startup America" Initiative

REPUBLICANS LUKEWARM TO OBAMA'S SMALL BUSINESS "STARTUP AMERICA" INITIATIVE:   President Obama’s "Startup America" initiative, which is designed "to focus on innovation, and how we can create the jobs and industries of the future by investing in the creativity and imagination of the American people," received little enthusiasm from Republicans.  As part of the initiative, the President’s new budget will propose making permanent the elimination of capital gains taxes on key investments in small businesses, which was passed as a temporary provision in 2010 as part of the Small Business Jobs Act the President signed in September.  The budget will also propose expanding the New Markets Tax Credit to encourage private sector investment in startups and small businesses operating in lower-income communities.

  • A spokesman for House Speaker John Boehner said, "Rather than picking and choosing which investments small businesses should make, the administration must recognize that job creation will come from less, not more, Washington interference in business decisions."
  • A spokeswoman for Ways and Means Chairman Dave Camp said that the Chairman would rather discuss the proposal in the context of a broader overhaul of the tax code.  The spokeswoman said, "The current tax code is broken and is hindering economic growth.  While tax provisions may be helpful to a specific industry or geographic sector, those provisions need to be examined in the larger context of broad-based tax reform and whether or not they help make American families and businesses of all sizes — small and large — more competitive."

TAX BILL INTRODUCED JANUARY 31ST:
S.232: A bill to amend the Internal Revenue Code of 1986 to increase the manufacturer limitation on the number of new qualified plug-in electric drive motor vehicles eligible for credit.
Sponsor: Sen Levin, Carl [MI] (introduced 1/31/2011)   Cosponsors (None)  

INTERNAL REVENUE SERVICE - CIRCULAR 230 DISCLOSURE:
As provided for in Treasury regulations, advice (if any) relating to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any plan or arrangement addressed herein.

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