President Obama introduced his FY 2011, with unprecedented appropriations of $3.8 trillion. The budget includes a mixture of tax cuts and tax increases. Among the cuts are an extension of the "Making Work Pay" credit, an increased child care credit, eliminating certain capital gains taxes on small businesses, continuation of Section 179 depreciation of up to $250,000 and making permanent the R & D credit. Increases include limiting deductibility of charitable contributions by high-income taxpayers and reinstituting the 35% and 38.6% tax rates that existed before the Bush tax cuts. Testimony on the budget included praise from the National Association of Manufacturers for proposing making the R&D credit permanent and criticism from Senator Grassley (R-IA) for increasing the effective tax rate on small businesses.
The budget proposal appears to me to give with one hand and take with the other to small businesses. There are several provisions which can help small business owners, but these owners are likely to be hit with higher individual tax rates in many cases. Additionally, little if any mention is made about regulatory reform, which might be one of the biggest factors why employment is NOT growing even though the economy has posted one or two good quarters recently.