Small businesses are the lifeblood of our economy. Between 1994 and 2004, they generated 60 to 80 percent of the nation's net new jobs. Two out of every three workers got their first job from a small business owner. And in our rural areas, small businesses account for nine out of every ten businesses.
But launching a small business isn't easy. Start-up costs can be pretty steep. On average, a new firm will inject about $80,000 into its business during the first year of operation. And tight credit markets have made finding financing even tougher.
Here’s how we can make it easier for America's small business entrepreneurs to do what they do best -- create new jobs.
We should double the deduction for small business start-up costs from $5,000 to $10,000.
This simple policy initiative would have an immediate impact on the 600,000 Americans who start their own businesses each year, and it would cost a fraction of what it cost to bail out the big banks that drove our economy to the brink of collapse.
The proposal will also let small business owners spend more time growing their businesses and less time deciphering the tax code. When entrepreneurs can deduct more upfront, they avoid the complicated calculations that go along with amortizing and depreciating their capital equipment purchases over a period of many years.
This is the 5th of 52 ideas, one per week for the entire campaign. Send us your ideas, too. Nothing is too big or too small. If the ideas are good ones, we’ll put them on the list. We can make things better, one thing at a time. Send your ideas to: chad@chadmcgowan.com
But launching a small business isn't easy. Start-up costs can be pretty steep. On average, a new firm will inject about $80,000 into its business during the first year of operation. And tight credit markets have made finding financing even tougher.
Here’s how we can make it easier for America's small business entrepreneurs to do what they do best -- create new jobs.
We should double the deduction for small business start-up costs from $5,000 to $10,000.
This simple policy initiative would have an immediate impact on the 600,000 Americans who start their own businesses each year, and it would cost a fraction of what it cost to bail out the big banks that drove our economy to the brink of collapse.
The proposal will also let small business owners spend more time growing their businesses and less time deciphering the tax code. When entrepreneurs can deduct more upfront, they avoid the complicated calculations that go along with amortizing and depreciating their capital equipment purchases over a period of many years.
This is the 5th of 52 ideas, one per week for the entire campaign. Send us your ideas, too. Nothing is too big or too small. If the ideas are good ones, we’ll put them on the list. We can make things better, one thing at a time. Send your ideas to: chad@chadmcgowan.com
