IDS 2: Small Growth Act of 2014

[Flake]

Small Business Growth Act of 2014
1. For businesses operating in the IDS with taxable income of under $1,000,000 and under 200 employees, a $2500 tax credit may be taken for each new employee hired after passage.
2. For businesses operating in the IDS with taxable income of under $10,000,000 and under 200 employees, the tax credit shall be phased out at a formula of $2500*(10,000,000 - AGI/10,000,000).
3. After 200 employees, the tax credit is no longer receivable.
4. This legislation is enacted upon passage.
5. This legislation expires on December 31st, 2016
[/quote]

Sponsor: Maxwell

[Maxwell]

The discussion here - should this be a tax credit or a deduction? Taxable income or AGI? I want t hear your voices here. I will also see if I can't get a cost estimate for this puppy and if it would blow up our budget or not.

But either way, we are currently in an ecoonomic calamity. 10% unemployment, on my watch, is not acceptable. I want to encourage small businesses to hire more people. Therefore, this tax credit becomes available. And obviously, we can move the expiration date until it's a day when employment returns to normality.

[Maxwell]

Nobody want to talk about this? I'll pull this if there isn't any debate on it. There's no point in passing it if nobody reads it.

I just asked Sirnick if he would give this and my other tax bill a cost estimate.

[Fmr. Pres. Duke]

I like tax credits over deductions because generally, the credit gives employers a higher refund than a deduction does.

We did some of this at the federal level during my presidency, including making these credits cash convertible in the event a business was new and didn't pay taxes yet. I support doing it at the regional level too because 10% unemployment isn't acceptable at any level of government.

[Maxwell]

I like tax credits over deductions because generally, the credit gives employers a higher refund than a deduction does.

We did some of this at the federal level during my presidency, including making these credits cash convertible in the event a business was new and didn't pay taxes yet. I support doing it at the regional level too because 10% unemployment isn't acceptable at any level of government.

I do recall that, and yes, tax credits are good. And making it cash convertible is actually a very good idea, encouraging not just small businesses, but new businesses.

[Pingvin]

Of course, 10% unemployment is a threat to the region. I fully support the idea and yes, like Duke said, there should be a cash convertion for the new businesses.

[Southern Senator North Carolina Yankee]

How many business have 200 employees or less and how many workers total in the region work in such businesses?

To get an idea of the impact it will have weighed against the cost of it.

[Maxwell]

How many business have 200 employees or less and how many workers total in the region work in such businesses?

To get an idea of the impact it will have weighed against the cost of it.

That's the question we'll have to get an answer to, thats why I went to GM Sirnick.

[Fmr. Pres. Duke]

I like tax credits over deductions because generally, the credit gives employers a higher refund than a deduction does.

We did some of this at the federal level during my presidency, including making these credits cash convertible in the event a business was new and didn't pay taxes yet. I support doing it at the regional level too because 10% unemployment isn't acceptable at any level of government.

I do recall that, and yes, tax credits are good. And making it cash convertible is actually a very good idea, encouraging not just small businesses, but new businesses.

Yes, I did have some good ideas when I was in the White House.

It's just a matter of whether we want to do it too at the state level since we already do it at the federal level. I forget if we put a timetable on it at the federal level or if it extended to existing companies. We also cut corporate taxes and lowered tax rates even more if businesses created jobs in Atlasia.

I suppose this could count towards businesses' regional tax rates and give people extra incentive to hire or start new businesses.

[Maxwell]

I like tax credits over deductions because generally, the credit gives employers a higher refund than a deduction does.

We did some of this at the federal level during my presidency, including making these credits cash convertible in the event a business was new and didn't pay taxes yet. I support doing it at the regional level too because 10% unemployment isn't acceptable at any level of government.

I do recall that, and yes, tax credits are good. And making it cash convertible is actually a very good idea, encouraging not just small businesses, but new businesses.

Yes, I did have some good ideas when I was in the White House.

It's just a matter of whether we want to do it too at the state level since we already do it at the federal level. I forget if we put a timetable on it at the federal level or if it extended to existing companies. We also cut corporate taxes and lowered tax rates even more if businesses created jobs in Atlasia.

I suppose this could count towards businesses' regional tax rates and give people extra incentive to hire or start new businesses.

I think it already does apply to regional tax rates, though if it doesn't, I'm sure we could amend it to make that clear.

So the ideas are not already there-

- Cash convertible
- Make it apply to Regional Tax Rates
- Make it refundable (this is my new idea)

[Fmr. Pres. Duke]

I like tax credits over deductions because generally, the credit gives employers a higher refund than a deduction does.

We did some of this at the federal level during my presidency, including making these credits cash convertible in the event a business was new and didn't pay taxes yet. I support doing it at the regional level too because 10% unemployment isn't acceptable at any level of government.

I do recall that, and yes, tax credits are good. And making it cash convertible is actually a very good idea, encouraging not just small businesses, but new businesses.

Yes, I did have some good ideas when I was in the White House.

It's just a matter of whether we want to do it too at the state level since we already do it at the federal level. I forget if we put a timetable on it at the federal level or if it extended to existing companies. We also cut corporate taxes and lowered tax rates even more if businesses created jobs in Atlasia.

I suppose this could count towards businesses' regional tax rates and give people extra incentive to hire or start new businesses.

I think it already does apply to regional tax rates, though if it doesn't, I'm sure we could amend it to make that clear.

So the ideas are not already there-

- Cash convertible
- Make it apply to Regional Tax Rates
- Make it refundable (this is my new idea)

The federal program is cash convertible, at least it was in the original bill I proposed, and I believe shua and I kept it that way. The final version I signed also set up the small business loans program through a federal agency that had been killed in previous years. Go figure.

I have no idea how the bill applies to regions though. We can amend it though to make sure it does apply.

[Flake]

Any more debate?

[Maxwell]

Duke do you have that amendment with all those features? I'll add the possibility of refundability tomorrow.

[Maxwell]

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[Fmr. Pres. Duke]

Duke do you have that amendment with all those features? I'll add the possibility of refundability tomorrow.

Which bill? Amend this one or the federal one?

[Maxwell]

Duke do you have that amendment with all those features? I'll add the possibility of refundability tomorrow.

Which bill? Amend this one or the federal one?

This one.

[Dereich]

Is setting a hard deadline for expiration a good idea? How do you feel about the Fed approach of linking the end of issuing new tax credits to a lower unemployment rate?

[Maxwell]

Is setting a hard deadline for expiration a good idea? How do you feel about the Fed approach of linking the end of issuing new tax credits to a lower unemployment rate?

That's a good idea for this, since it may be longer than this point. Let's talk about that later today or tomorrow, depending on your time zone.

[Maxwell]

What is our current tax code and budget?

Right here!

https://uselectionatlas.org/AFEWIKI/index.php/2014_IDS_Budget

[Fmr. Pres. Duke]

Do we want this to mirror the federal program and be an addition to it? How do we want to work this amendment?

[Maxwell]

Do we want this to mirror the federal program and be an addition to it? How do we want to work this amendment?

We want this to be an addition

Once/if Sirnick is confirmed, I'll see if he can give me an estimate before we give this a go.

[Maxwell]

This bill will cost us

-$30 Million

but will create

-12,000 jobs, or (if I do crude math and assume average income of $40,000) $480 Million in income.

This is bill is extremely worth it. However, I'm wondering if we can't do a little more. I'll increase the deduction and see if how many more jobs are created because of it.

[Dereich]

I offer the following amendment:

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I decided on 5.5% based on the Fed statement here considering 5.2-5.5% to be the current normal rate of employment. Keeping the program open longer than that would probably cost more than it would be worth.

[Maxwell]

Amendment is friendly.

[Yelnoc]

200 employees seems like a lot to me for a small business. What is that number based on?