Facing GOP criticism, Obama announces benefits for small businesses

(CBS News) After two days of Republican attacks slamming President Obama for being bad for small businesses, the White House unveiled 6 actions intended to help small business, including a tax break and easier access to capital.

Republicans pounced after the president's announcement Monday that he would push to extend only the Bush-era tax cuts for those making $250,000 or less, saying that move would harm small businesses and stunt job creation.

"Those that are job creators and small businesses are going to see a massive tax increase and that will kill jobs," Republican presidential candidate Mitt Romney said in an interview with Radio Iowa. "It will kill jobs in this country and hurt the middle class. The right answer is to extend the tax rates as they currently exist indefinitely until we put in place an entirely new and reformed system."

House Speaker John Boehner added, "Why we would want to tax the people that we expect to create jobs in this country makes no economic sense."

Wednesday morning, the White House announced via a statement that the president is moving forward on several initiatives, most through executive action, which allow the provisions to take effect immediately without having to seek approval from Congress.

Watch a report on how Obama is making taxes a key election issue in the video to the left.

The provisions include increasing the loan amount available to small businesses through the Small Loan Advantage 2.0 program, streamlining applications for surety bonds under $250,000, reducing paperwork for the Disaster Loan Program.

Another provision the White House announced Wednesday, which ensures small business contractors that work with the government receive immediate payment, has already been implemented. CBS Radio News White House correspondent Mark Knoller reports that the White House announced the same action in September 2011. However, the White House says the new provision goes further, ensuring subcontractors receive payment within 15 days by providing a contract modification clause.

One additional provision, which needs Congressional approval, would allow small business to write-off capital investments up to $250,000. The White House says that without an extension of the tax incentive, the expensing limit would drop to $25,000.

Boehner spokesman Brendan Buck said the the president's announcement is "no solace for small businesses facing a huge tax increase next year," referring to the president's proposal to let some of the Bush-era tax cuts expire.

[marychgo]

Some 97% of small business people who file as S corporations have Adjusted Gross Incomes BELOW $250,000 a year, and the vast majority of Americans who have Adjusted Gross Incomes ABOVE $250,000 a year DON'T operate small businesses and DON'T "create jobs." The GOP has been lying about these facts FOREVER!

[ladyang]

At least President Obama is doing something for the country, while the gop go after the ACA for the 31st time! Good grief, you neocons/teabaggers/evan-taliban are thick!

[smstevens74]

Well-said. I've had enough of the proof-texting, misinformation circulation, and virulent desperation of the Republicans.

[dj_chi]

The GOP has already stacked the deck against small businesses. Favored deals, lobbyist-written legislation, off-shoring tax breaks, and other Corporate America give-aways have given the big guys the inside track when it comes to competing. Small businesses don't have access to those things. They pay more at every stage of the game.

Has the GOP talked about revamping the system to level the playing field? The way true capitalism is supposed to be? No! All this misdirection about extending the Bush-era tax cuts does nothing to really impact a system that treats small businesses as the bastard child of the business world in government's eyes.

[-sharky]

Mr Romney should release several years of tax returns as every presidental candidate has done for decades. If he has nothing to hide, what is the problem?

[RollotheNorman]

F&F is off topic, and apparently you've not gotten the word apparently. Guess you've been out camping. The Fortune Magazine article pretty much exposed Issa and the House loons as giant liars, aided and abetted by Faux News. RepubliCONs everywhere have pretty much dropped it like the proverbial hot potato and starting to mutter other lies like the time honored "trickle-down economics will grow jobs."

[wfw3536]

Did Obama explain to the hundreds of thousands of small business owners how they will come up with the extra taxes they will be paying because they make over 250,000 dollars a year.

[dj_chi]

You're talking about a very small percentage of small businesses. I don't know if it's really hundreds of thousands that would be affected since most DON'T make over that, so I have a feeling you're making that number up.

[wfw3536]

Jewsagainst------------If you challenge yourself read the US Congressional report by the Joint Committee on Taxation(page 25 of JCT report) which list 750,000 small businesses affected by this tax.

[sjc_1]

There were small business benefits in the ARRA recovery program and the jobs proposal of September 2011. The money made from TARP was to go to community banks to help small business.

The Republicans opposed all of these but they want you to believe they are for small business. The jobs proposal was called a "give away" to small business by the Republicans even though it help small business staying business, helped them keep the people they have employed. Now the ACA health program helps them provide health insurance for their employees, but that is all suppose to be a "socialist plot".

[2happy2ride]

The ARRA, according to the overwhelming majority of economists was a total failure. It's only benefit was to the unions & obama's bundlers & associates. "Jobs weren't as shovel-ready as I thought"- obama. We're almost $16 TRILLION in debt & that's a BENEFIT for small business? At least at a magic show you get entertained, NOT buried along with our grandchildren's future.

[dj_chi]

ARRA was NOT seen as a total failure, 2happy. It kept the recession from going deeper. THAT is what economists by and large say.