We can finally stop debating Joe the Plumber, and start looking ahead to what’s to come. Sen. Barack Obama’s campaign offered several proposals with significant implications for small businesses. Here’s a look at some of those measures:
TAXES: Sen. Obama pledged to keep taxes at current levels for Americans with income of $250,000 or less – which includes the vast majority of entrepreneurs, tax experts say. Those earning more than $250,000 annually, however, would see their tax bills rise under the Obama plan. The president-elect also proposed eliminating capital-gains taxes for investments in start-ups and small businesses.
HEALTH CARE: Sen. Obama proposed changes that would eventually require employers to purchase health insurance for their employees, or pay a fine into a pool. Some small employers would be exempt from the mandate (though how many isn’t clear). Sen. Obama also proposed giving employers a 50% tax credit on the cost of employee health insurance to reduce the cost burden.
EMPLOYMENT: The candidate called for a two-year plan that would give a $3,000 tax credit to businesses for every new job created. He would temporarily extend a tax break allowing small businesses to write off up to $250,000 of investments. He suggested tying the minimum wage to inflation.
FINANCING: Sen. Obama proposed providing relief to small businesses struggling to borrow money to run their operations right now, along with expanding Small Business Administration lending programs devoted to minority- and women-owned businesses.
IMMIGRATION: The candidate supported allowing legal status to illegal immigrants, but requiring employers to take on the role of verifier.
UNIONIZATION: Sen. Obama wanted to make it easier for employees to unionize by offering a check-off system.