President Obama said today he is elevating the Small Business Administration to a Cabinet-level agen
President Obama said today he is elevating the Small Business Administration to a Cabinet-level agency. Details soon.
cnn.com
think
(11,641 posts)MinervaX
(169 posts)Last edited Fri Jan 13, 2012, 03:37 PM - Edit history (1)
It will merely be co-opted by large corporations who will find loopholes to enrich themselves. Don't think a corporation can find a way to call itself a small business? They already call themselves persons.
pnwmom
(109,009 posts)emilyg
(22,742 posts)tell us why this is good?
Response to emilyg (Reply #10)
savalez This message was self-deleted by its author.
pnwmom
(109,009 posts)What would be wrong with that?
Unfortunately, there is another proposal that might not be as good for small business.
http://www.latimes.com/business/la-fi-small-business-20120114,0,733555.story
Reporting from Washington Small businesses scored a victory when President Obama said the head of the federal agency that provides them with loan guarantees and other assistance would begin attending Cabinet meetings.
Karen Mills, who leads the Small Business Administration, "is going to make sure that small-business owners have their own seat at the table in our Cabinet meetings," Obama said Friday.
His announcement was welcomed by small business advocates. For more than three years, they had been urging Obama to elevate the SBA administrator to Cabinet rank, the same top status as in the Clinton administration.
But some worried that the enhanced voice for small businesses at the highest levels of the Obama administration could be short-lived because of another proposal to combine the agency with five others.
saras
(6,670 posts)...it may or may not be a good start.
But believers in Obama's chess ability might do worse than to hope it's a first step in figuring out how to separate the business America needs to survive from the corporate rule it can't afford.
Gman
(24,780 posts)A business that does up to (I believe) $2 million in revenue in a year qualifies as a small business. But $2 million is not a whole lot after salaries, overhead and misc expenses are paid.
But if this brings the focus on getting small businesses up to grossing $2 million or more a year, that'll benefit a whole lot of people with jobs.
So it's a good thing.
Lint Head
(15,064 posts)to use 'S' corporations to avoid paying taxes. That is a loophole that needs to be slammed shut for corporations that employee thousands and makes millions inflating prices then pays virtually no taxes. It is a subject that is hardly ever mentioned in the news.
An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.
In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.
jeff47
(26,549 posts)Sgent
(5,857 posts)since there are so man restrictions on ownership (maximum of 99 owners, no foreign citizens / firms, no corporate ownership)
S Corps -- although there are some large ones -- are generally small to medium sized business owned by an individual, a few partners or family.
LLC's and partnerships actually have a much broader abilities to pass through income, and are becoming more popular (Chrysler is one for instance).
One final issue for any pass through entity is "phantom profits". These are accounting / book profits that may not result in cash, and even if they do, the cash may not be distributed to owners. Those owners wind up having to pay taxes on the entire profit even if they only receive a portion of it.
Gman
(24,780 posts)by the owners. The owners must be paid somehow. If its taxed at a lower rate, that's no big deal either. At least its being taxed. LLC's are usually structured similarly with the profits distributed to the owners according to their share and taxed as straight income by the owner.
And if the S structure, or LLC structure means profits are taxed at a lower rate then maybe the company could afford to expand and hire. That's a good thing too.
XemaSab
(60,212 posts)said he was looking for ways to merge agencies, not create new levels of bureaucracy.
jpak
(41,760 posts)I wantg my coungtry back!!!!1111
McCamy Taylor
(19,240 posts)BlancheSplanchnik
(20,219 posts)a LOT!
Robb
(39,665 posts)dkf
(37,305 posts)Robb
(39,665 posts)Favorable terms for SBA loan qualifiers would boost the chance of success for people with already sound and vetted business plans.
dkf
(37,305 posts)Didn't realize the banks do that. I thought the post was addressing non-SBA small business loans.
kestrel91316
(51,666 posts)Kalidurga
(14,177 posts)it is more feng shui.
AngryAmish
(25,704 posts)harun
(11,348 posts)LanternWaste
(37,748 posts)The proposal dates back to the president's 2011 State of the Union address, in which the president complained of government overlap and red tape that clogs the federal government, promising to tackle the problem. He injected a bit of humor into his speech to illustrate the point: "The Interior Department is in charge of salmon while they're in fresh water, but the Commerce Department handles them when they're in saltwater," he said to laughter. "I hear it gets even more complicated once they're smoked."
By late that year, however, officials shied away from forecasting when the president would fulfill his promise.
The White House announced early Friday morning that Obama would seek authority from Congress, not granted since the days of Ronald Reagan, to reorganize and consolidate portions of the federal government. His first proposal would be to reduce redundancy in the area of trade and commerce.
http://www.foxnews.com/politics/2012/01/13/obama-seeks-consolidation-authority-to-merge-agencies/#ixzz1jMs2m9Ej
Seems to me to be, at wost, merely benign. But I'm not very clever about these things...
truthisfreedom
(23,159 posts)want to ram through, minimizing their ability to attack him for not being pro-business. His overall plan is to combine many agencies to reduce redundancy and save $3B in 10 years. I'm for it.
MADem
(135,425 posts)I hope this increased representation will be helpful to them. They deserve a seat at the table, too.
BadgerKid
(4,559 posts)1. Most importantly, a chance to invigorate the true small businesses.
2. End-run around Big Biz twiddling their thumbs while trying to extort tax cuts.
3. End-run around a Republican Congress, to the extent funding isn't cut from budgets.
4. Stealing the GOP's election thunder.
Looking forward to the GOP being given a "time out" for four, or more, years.
dkf
(37,305 posts)The deck is stacked against small business. We need to blunt the advantages big business has over small ones and I don't mind if the government is organized to enable this.
OKNancy
(41,832 posts)please post a direct link to the story, not just cnn.com
I didn't find an article by this exact title on cnn, however readers who want to read a full article can find one here
http://www.cnbc.com/id/45989394
Obama Elevates SBA to Cabinet-Level Agency
I won't lock at this time.... just remember for the future.
Thanks, Nancy (LBN host)
usrname
(398 posts)A great idea and unstoppable by the GOP, unless they're no longer for smaller government.
byronius
(7,402 posts)The SBA's been savaged since the original days of Newt.
jmowreader
(50,567 posts)"That evil muslim with the radical Christian preacher is making the government bigger again! That's all Democrats ever do!"
Like there wasn't a Small Business Administration before, right?
fasttense
(17,301 posts)I looked it up at the SBA and it breaks out small businesses based upon the industry.
For example a financial institution can not have more than $150 million in assets to be considered a small business while a cattle rancher can not have more than $750,000 in assets to be considered a small business. Some industries are not defined by total assets but by the number of people who work for the business. For example an Industrial Sand Mining company can not have more than 500 people employed to be considered a small business while a Fats and Oils Refining and Blending company can not have more than 1,000 people employed.
I would not consider some of these small business definitions as small, while others I think are well defined.
A small sheep farmer can not have more than $750,000 in assets.
Here's the link if you want to look up what a small business definition is in your field.
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=17a8b75b6d39a91bd4e087a6f4339059&rgn=div5&view=text&node=13:1.0.1.1.17&idno=13#13:1.0.1.1.17.1.266
DCBob
(24,689 posts)who keep harping about how important small business is in this country. They should applaud the President but they wont. They will probably claim is just more bureacracy and do more harm than good.
Gringostan
(127 posts)It's not a panacea; but every step in the right direction is good...