Beauty Store Business

site directory

Check out regularly updated news on beauty industry developments, including state-of-the-industry bulletins, company activity reports and the people who make it all tick.

01.29.10
NSBA Responds to State of the Union Address

More than 1 million people tuned in to President Barack Obama’s first State of the Union address. A large number of viewers undoubtedly included small business owners interested in learning how he might lessen the blows they’ve endured from the difficult economy. President Obama did not neglect to emphasize the influence that the small business community will have in helping turn around the nation’s economy. Thus, he delineated a number of initiatives targeted at aiding small businesses. The National Small Business Association offered the following observations in response to the State of the Union address.

• Due to costly employee benefits, a hiring tax credit will mostly benefit employers that are planning to add new hires regardless of the incentive. The association suggests a payroll-tax holiday on all employees, to improve cash flow and ease payroll costs.

• Although the proposed one-year elimination of the capital gains tax would apply to only a handful of small businesses, it would provide added incentive to invest in small businesses.

• The proposed extension of the enhanced Section 179—expensing of up to $250,000—and the accelerated bonus depreciation will help small business owners reinvest in their businesses and have more cash on hand.

• The proposal to divert $30 billion from TARP funds to community banks for small-business lending is a good start that needs to take effect immediately.

• Requiring all employers to offer IRAs for all employees and facilitate direct deposits into those accounts could be costly to small businesses. This could be particularly detrimental to businesses that don’t use a payroll company or participate in direct deposits.

• Improving and enhancing exporting opportunities for small businesses will strengthen not only the small business community, but U.S. exports as well.

“We were pleased to see small business in the limelight,” said Todd McCracken, NSBA president and CEO. “It remains to be seen, however, whether the administration actually will push Congress to enact legislation that is helpful to small businesses.”

Home | Subscribe | Advertise | About Us | Contact Us

Calendar | This Month In Print| Feedback | Privacy Policy

Beauty Store Business, A Creative Age Publication | 7628 Densmore Ave., Van Nuys, CA 91406 | Tel 818/782-7328 or 800/442-5667

©2010 Creative Age Communications, Inc. All rights reserved. The materials on this site may not be reproduced, distributed, transmitted,
cached, or otherwise used, except with prior written permission of Creative Age. Contact us at webmaster@creativeage.com.