1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Small Business Tax Cuts Bill passes over Republican Objection

Discussion in 'BBS Hangout: Debate & Discussion' started by SamFisher, Sep 16, 2010.

  1. SamFisher

    SamFisher Member

    Joined:
    Apr 14, 2003
    Messages:
    59,951
    Likes Received:
    38,116
    Here is the summary of the bill, if you care:

    Small Business Jobs and Credit Act of 2010 - Title I: Small Business Lending Fund - (Sec. 103) Establishes in the Treasury the Small Business Lending Fund, administered by the Secretary of the Treasury to cover purchases of preferred stock and other financial instruments from eligible institutions (Small Business Lending Fund Program). Limits the aggregate amount of purchases to $30 billion.

    Requires all funds received by the Secretary in connection with such purchases to be paid into the general fund of the Treasury for reduction of the public debt.

    Prohibits more than 1% of the value of purchases made by the Secretary in implementing the Program from being used to make purchases from community development loan funds (CDLFs).

    Directs the Secretary to prescribe eligibility criteria to determine the financial ability of a CDLF to participate in the Program and repay the investment.

    Allows eligible institutions with assets of $1 billion or less to apply for a capital investment from the Fund not exceeding 5% percent of risk-weighted assets. Allows eligible institutions with assets of between $1 billion and $10 billion to apply for a capital investment from the Fund of up to 3% percent of risk-weighted assets. Prescribes requirements for the treatment of assets of holding companies and institutions controlled by holding companies.

    Requires an applicant institution (including a state-chartered bank) to submit: (1) a small business lending plan describing how its business strategy and operating goals address the needs of small businesses in the areas it serves; and (2) a plan to provide linguistically and culturally appropriate outreach.

    Permits CDLFs to apply for a capital investment from the Fund in an amount not exceeding 10% of total assets, as reported in the call report immediately preceding the application date.

    Permits an applicant institution to include other nonfarm, nonresidential real estate loans of under $10 million each in the determination of the amount of its small business lending.

    Declares ineligible for a capital investment from the Fund any institution that is either on the FDIC problem bank list, or has been removed from such list for less than 90 days.

    Prescribes requirements governing financial instruments issued to the Treasury by an eligible institution receiving a capital investment (including S Corporations). Sets forth financial incentives for small business lending by such institutions.

    Sets a 10-year deadline for repayment of a capital investment under the Program.

    Sets forth requirements governing financial instruments issued by a Community Development Financial Institution loan fund (CDFILF) receiving a capital investment under the Program. Makes incentives contingent upon an increase in the number of loans made. Sets forth an alternative computation for small business lending amount made by an eligible institution.

    Requires the Secretary to issue regulations and other guidance to permit eligible institutions to refinance securities issued to Treasury under the Community Development Capital Initiative (CDCI) of the Troubled Asset Relief Program (TARP) established by the Emergency Economic Stabilization Act of 2008 (EESA) and the TARP Capital Purchase Program (CPP) for securities to be issued under the Program, but prohibits participation by certain nonpaying CPP participants.

    Instructs the Secretary to require capital investment recipients to provide linguistically and culturally appropriate outreach and advertising in the applicant pool using media outlets which target organizations, trade associations, and individuals that represent or work within or are members of minority communities, women, and veterans.

    Requires the appropriate federal banking agency for an eligible institution that receives funds under the Program to issue guidance regarding mandatory prudent underwriting standards for loans it makes.

    Requires each institution receiving a capital investment under the Program to: (1) issue a quarterly report detailing new loans to small businesses; and (2) state on its Internet website that, as a participant in the Program, it is seeking to make small business loans to qualified borrowers and may not discriminate on the basis of any factor prohibited under the Equal Credit Opportunity Act, including race, color, religion, national origin, sex, marital status, or age.

    (Sec. 105) Instructs the Secretary, when exercising authorities granted under this title, to take into consideration, among other things, increasing the opportunity for small business development in areas with high unemployment rates that exceed the national average.

    (Sec. 107) Directs the Inspector General (IG) of the Department of the Treasury to audit and investigate purchases of financial instruments under the Program through the Office of Small Business Lending Fund Program Oversight.

    Establishes the Office of Small Business Lending Fund (SBLF) Program Oversight within the Office of the IG. Instructs the IG to appoint a Special Deputy Inspector General for SBLF Program Oversight to lead the Office.

    Directs the Comptroller General to perform and report to the appropriate congressional committees on annual audits of the Program.

    Prescribes compliance certification requirements for Program participants and loan recipients.

    Prohibits the use of funds under this Act to pay the salary of an individual officially disciplined for viewing, downloading, or exchanging p*rnography on a federal government computer while performing official federal duties.

    (Sec. 108) Makes appropriations to pay the costs of $30 billion of capital investments in eligible institutions, including the costs of modifying such investments, and the costs of administering the capital investments program.

    (Sec. 109) Terminates the authority to make capital investments in eligible institutions one year after enactment of this Act.

    (Sec. 111) Establishes the Small Business Lending Fund Program as separate and distinct from TARP. States that an institution shall not be considered a TARP recipient by virtue of a capital investment under this Act.

    (Sec. 112) Directs the Secretary to: (1) study and report to Congress on the number of women-owned, veteran-owned, and minority-owned businesses that receive assistance as a result of the Program; and (2) disaggregate study results by ethnic group and gender.


    (Sec. 113) Authorizes an eligible institution to amortize losses or write-downs, on a quarterly straight-line basis over a certain temporary period, in order to increase the availability of credit for small businesses. Prescribes amortization requirements and requires regulations defining minimum underwriting standards.

    (Sec. 114) Expresses the sense of Congress that the Federal Deposit Insurance Corporation (FDIC) and other bank regulators are sending mixed messages to banks regarding regulatory capital requirements and lending standards, which is a contributing cause of decreased small business lending and increased regulatory uncertainty at community banks.

    Title II: State Small Business Credit Initiative - State Small Business Credit Initiative Act of 2010 - (Sec. 203) Establishes a seven-year State Small Business Credit Initiative (Initiative), administered by the Secretary to allocate federal funds for FY2009-FY2010 to participating states with capital access programs.

    (Sec. 205) Prescribes eligibility criteria for state capital access programs providing portfolio insurance for business loans.

    Requires the portfolio insurance to be based on a separate loan-loss reserve fund for each financial institution, with: (1) premiums paid by the financial institution lenders and by the business borrowers to the reserve fund to have their loans enrolled in it; and (2) state contributions to the reserve fund in amounts equal to such premium charges. Limits portfolio insurance to loans of up to $5 million to borrowers with 500 employees or fewer at the time that the loan is enrolled in the program.

    Requires the Secretary to approve for federal contributions any state capital access program meeting specified minimum requirements.

    Requires an applicant state to report to the Secretary how it plans to use the federal contributions to the reserve fund to provide access to capital for small businesses in low- and moderate-income, minority, and other underserved communities, including women- and minority-owned small businesses.


    (Sec. 206) Authorizes a participating state that establishes a new, or has an existing, eligible credit support program to apply for the Secretary's approval of a state other credit support program [sic] for federal contributions to, or for the account of, the state program.

    Requires a state other credit support program, among other eligibility criteria, to demonstrate that one dollar of public investment by the state program will cause and result in one dollar of new private credit, with a reasonable expectation that, when considered with all other state programs, they together have the ability to use new federal contributions to cause and result in amounts of new small business lending at least 10 times the new federal contribution amount. Requires such a program to extend credit support to borrowers with an average size of 500 or fewer employees, but in no event to borrowers with more than 750 employees. Requires such credit support to target loans with an average principal amount of $5 million or less, but in no event more than $20 million.

    (Sec. 208) Authorizes the reduction of federal allocations to the state or termination of further allocation transfers to the state upon its termination of participation in the program, or failure to submit timely and complete reports, or its noncompliance with the terms of the allocation agreement.

    (Sec. 209) Directs the Secretary to: (1) establish minimum national standards for approved state programs; and (2) provide states with technical assistance for starting programs and generally disseminating best practices.

    Makes appropriations. Terminates the program at the end of seven years.

    (Sec. 211) Directs: (1) the IG to audit and investigate the use of funds made available under this Act; and (2) the Comptroller General to audit the program annually and report the results to the appropriate congressional committees.


    Requires any financial institution receiving financial assistance under this title to certify compliance with regulations requiring them to verify the identity of persons seeking to open an account, including any appearance on a list of suspected terrorists or terrorist organizations.

    Requires any private entity receiving financial assistance under this title to certify to the participating state that its principals have not been convicted of a sex offense against a minor.

    Prohibits the use of funds under this title to pay the salary of an individual officially disciplined for viewing, downloading, or exchanging p*rnography on a federal government computer while performing official federal duties.

    Title III - Small Business Early-Stage Investment Program - Small Business Early-Stage Investment Program Act of 2010 - (Sec. 302) Amends the Small Business Investment Act of 1958 to instruct the Administrator of the Small Business Administration (SBA) to establish an early-stage investment program to provide equity investment financing to support early-stage small businesses.

    Permits program participation by any existing or newly formed incorporated body, limited liability company, or limited partnership organized under federal or state law for the purpose of performing the functions and conducting the activities contemplated under such program, and any manager of a small business investment company.

    Requires a participating investment company to make all its investments in small business concerns, of which at least 50% are required to be early-stage small businesses.

    Requires a participating investment company to convey an equity financing interest to the Administrator, entitling the Administrator to a pro rata portion of any distributions by the participating investment company equal to the percentage of capital in the participating investment company that the equity financing constitutes.

    Limits the manager profits interest payable to the managers of a participating investment company to 20% of profits, exclusive of any that may accrue as a result of the capital contributions of any such managers.

    Requires a participating investment company to make all distributions to all investors in cash within a reasonable time after exiting investments, including following a public offering or market sale of underlying investments.

    Creates within the Treasury a separate fund for equity financings, to be available to the Administrator as a revolving fund for program purposes.

    Requires recipients of equity financing under this Act to certify they are in compliance with specified federal requirements governing immigration, sex offenders, and p*rnography.

    (Sec. 304) Prohibits funds appropriated for the program from being used for a congressional earmark.

    Title IV: Miscellaneous - States that the budgetary effects of this Act, for compliance with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled "Budgetary Effects of PAYGO Legislation" for this Act, provided that such statement has been submitted prior to the vote on passage.

    Title V: Tax Provisions - Small Business Jobs Tax Relief Act of 2010 - Subtitle A: Small Business Tax Incentives - Part 1: General Provisions - (Sec. 501) Amends the Internal Revenue Code to increase from 50% to 100% the exclusion from gross income of the gain from the sale or exchange of qualified small business stock acquired after March 15, 2010, and before January 1, 2012.

    Part 2: Limitations and Reporting on Certain Penalties - (Sec. 511) Limits the penalty for failure to disclose a reportable transaction (a transaction determined by the Internal Revenue Service [IRS] as having a potential for tax avoidance or evasion) to 75% of the decrease in tax resulting from such transaction.

    (Sec. 512) Requires the Commissioner of Internal Revenue to report by December 31, 2010, and annually thereafter, to the House Committee on Ways and Means and the Senate Committee on Finance on penalties assessed for certain tax shelters and reportable transactions.

    Part 3: Other Provisions - (Sec. 521) Increases the tax deduction for trade or business start-up expenditures from $5,000 to $20,000 in 2010 and 2011.

    (Sec. 522) Revises the definition of "qualified nonrecourse financing" to include qualified nonrecourse real property or Small Business Investment Company financing as amounts at risk for purposes of determining the deductibility of losses from certain investment activities, including farming, leasing, and energy exploration.

    (Sec. 523) Excludes from gross income any amount paid for a borrower under the Small Business Administration (SBA) borrower assistance program.

    Subtitle B: Revenue Provisions - (Sec. 531) Revises rules for valuing assets in grantor retained annuity trusts to require that the right to receive fixed amounts from an annuity last for a term of not less than 10 years, that such fixed amounts not decrease during the first 10 years of the annuity term, and that the remainder interest have a value greater than zero when transferred.

    (Sec. 532) Excludes any fuel with an acid number greater than 25 from the definition of "cellulosic biofuel" for purposes of the tax credit for alcohol used as fuel.

    (Sec. 533) Increases by 7.75% the estimated tax installment for the third quarter of 2015 for corporations with assets of not less than $1 billion.

    Title VI: Plain Writing Act - Plain Writing Act of 2010 - (Sec. 604) Requires the head of each executive agency to: (1) designate one or more senior officials within the agency to oversee the agency's implementation of this Act; (2) communicate this Act's requirements to the agency's employees; (3) train agency employees in plain writing; (4) establish a process for overseeing the agency's ongoing compliance with this Act's requirements; (5) create and maintain a plain writing section of the agency's website that is accessible from its homepage; and (6) designate one or more agency points-of-contact to receive and respond to public input on the implementation of this Act.

    Requires each agency, by one year after enactment, to use plain writing in every covered document of the agency that the agency issues or substantially revises. Defines "covered document" to: (1) mean any document that is relevant to obtaining any federal benefit or service or filing taxes, that provides information about any federal benefit or service, or that explains to the public how to comply with a requirement the federal government administers or enforces; (2) include (whether in paper or electronic form) a letter, publication, form, notice, or instruction; and (3) exclude a regulation.

    Allows agencies to follow the guidance of: (1) the writing guidelines developed by the Plain Language Action and Information Network; or (2) guidance provided by the agency head.

    Title VII: Sense of Congress on Agriculture and Farming Small Business Loans - (Sec. 701) Expresses the sense of Congress that: (1) agriculture operations, farms, and rural communities should receive equal consideration through lending activities for small businesses, particularly small- and midsize farms and agriculture operations; and (2) attention should be given to ensuring adequate small business credit and financing availability in agriculture and farming sectors.

    Title VIII: Small Business Borrower Assistance Program - Small Business Assistance Fund Act of 2010 - (Sec. 801) Directs the SBA Administrator to implement a Small Business Borrower Assistance Program providing payments to lenders of principal and interest on qualifying guaranteed small business loans of up to $300,000. Requires automatic enrollment in the Program of each borrower receiving a qualifying small business loan, unless the borrower opts out.

    Requires the Administrator to commit an amount to each borrower equal to 6% of the principal disbursed amount of the borrower's qualifying loan.

    Authorizes appropriations.

    This bill only passed 61-38

    Alexander (R-TN)
    Barrasso (R-WY)
    Bennett (R-UT)
    Bond (R-MO)
    Brown (R-MA)
    Brownback (R-KS)
    Bunning (R-KY)
    Burr (R-NC)
    Chambliss (R-GA)
    Coburn (R-OK)
    Cochran (R-MS)
    Collins (R-ME)
    Corker (R-TN)
    Cornyn (R-TX)
    Crapo (R-ID)
    DeMint (R-SC)
    Ensign (R-NV)
    Enzi (R-WY)
    Graham (R-SC)
    Grassley (R-IA)
    Gregg (R-NH)
    Hatch (R-UT)
    Hutchison (R-TX)
    Inhofe (R-OK)
    Isakson (R-GA)
    Johanns (R-NE)
    Kyl (R-AZ)
    Lugar (R-IN)
    McCain (R-AZ)
    McConnell (R-KY)
    Murkowski (R-AK)
    Risch (R-ID)
    Roberts (R-KS)
    Sessions (R-AL)
    Shelby (R-AL)
    Snowe (R-ME)
    Thune (R-SD)
    Wicker (R-MS)

    These 38 Republicans voted against the bill. 2 voted for it (Voinovich and LeMieux)

    Can somebody tell me why Republicans are opposed to this idea? Why is tax cuts and credit for small business a bad idea, under thier rationale?

    Thanks in advance.
     
  2. basso

    basso Member
    Supporting Member

    Joined:
    May 20, 2002
    Messages:
    31,945
    Likes Received:
    8,180
    because Obama is black.
     
  3. Dubious

    Dubious Member

    Joined:
    Jun 18, 2001
    Messages:
    18,317
    Likes Received:
    5,089
    As my lawyer, will you laymanize that for me?
     
  4. Qball

    Qball Member

    Joined:
    Nov 9, 2001
    Messages:
    4,151
    Likes Received:
    210
    [​IMG]
    SamFisher's computer at 2:18pm
     
    1 person likes this.
  5. SamFisher

    SamFisher Member

    Joined:
    Apr 14, 2003
    Messages:
    59,951
    Likes Received:
    38,116
    Only if you have a box of surgical gloves.
     
  6. mc mark

    mc mark Member

    Joined:
    Aug 31, 1999
    Messages:
    26,195
    Likes Received:
    469
    Another issue the tea baggers should be applauding
     
  7. BetterThanI

    BetterThanI Member

    Joined:
    Jun 25, 2007
    Messages:
    4,181
    Likes Received:
    381
    Shhh...don't confuse them with facts.
     
  8. Dubious

    Dubious Member

    Joined:
    Jun 18, 2001
    Messages:
    18,317
    Likes Received:
    5,089
    This is Sam's avatar in my head:

    [​IMG]
     
  9. mc mark

    mc mark Member

    Joined:
    Aug 31, 1999
    Messages:
    26,195
    Likes Received:
    469
  10. Phillyrocket

    Phillyrocket Member

    Joined:
    Jun 12, 2002
    Messages:
    13,959
    Likes Received:
    10,612
    Because this will just increase the deficit, unlike those Bush tax cuts....
     
  11. YallMean

    YallMean Member

    Joined:
    Mar 20, 2003
    Messages:
    14,277
    Likes Received:
    3,807
    Interesting, care to elaborate?

    :rolleyes: :mad:
     
  12. Dream Sequence

    Joined:
    Mar 23, 2000
    Messages:
    1,080
    Likes Received:
    556
    The Republican's absolutely ridiculous opposition to this bill sealed in my mind why the GOP is out their mind.

    I've probably voted 50/50 Republican/Democrat in my life, but after watching the absolute detour the GOP has taken from sanity and placed party above country, I wonder if I'll ever bother voting GOP again.

    This bill is has so many things the GOP wanted and yet they almost unilaterally vote against it? Typifies the "just say no" mindset the GOP has adopted. Well I know this bill is going to open up credit for my small business, create jobs, and just as importantly, save jobs.

    I've been watching this bill closely and to say it was a relief to see this get signed is an understatement. We basically had put all of our growth plans on hold b/c we were reserving $ with the expectation that future funding would be unavailable.

    GOP - the friend of the small business? Pfffft.
     
    1 person likes this.
  13. mc mark

    mc mark Member

    Joined:
    Aug 31, 1999
    Messages:
    26,195
    Likes Received:
    469
    This should be the mantra of Democrats for the next six weeks.
     
  14. DonnyMost

    DonnyMost Membar
    Supporting Member

    Joined:
    May 18, 2003
    Messages:
    48,304
    Likes Received:
    18,556
    We've seen this about two dozen times so far since Obama got elected, but anything he supports, even if it is an idea born from Republicans, is universally opposed by the GOP now. Party > Country to them. Shameless.
     
  15. FranchiseBlade

    Supporting Member

    Joined:
    Jan 14, 2002
    Messages:
    50,836
    Likes Received:
    19,521
    Well it only goes to show, that GOP friendship to small business is nowhere near as deep as their opposition to Obama.

    The Democrats should make a huge issue out of this, but they don't seem to be aggressively pushing it so far. What a wasted opportunity.
     
  16. B-Bob

    B-Bob "94-year-old self-described dreamer"

    Joined:
    Jul 26, 2002
    Messages:
    35,538
    Likes Received:
    35,847
    Would honestly like to see a response from someone who is sympathetic to those Republican votes. If there is any reason to oppose this other than "because Obama wants it," then I'd like to know.

    Phillyrocket was kidding I guess.
    ...

    Maybe basso could cut and paste something? Bueler?
     
  17. Dubious

    Dubious Member

    Joined:
    Jun 18, 2001
    Messages:
    18,317
    Likes Received:
    5,089
    Government subsidized small businesses threaten the margins of Big Business?

    Small business hiring is wage inflation?

    These costs to government increase the likelihood of expiring the Bush tax cuts for the rich?
     
    #17 Dubious, Sep 17, 2010
    Last edited: Sep 17, 2010
  18. glynch

    glynch Member

    Joined:
    Dec 1, 2000
    Messages:
    17,885
    Likes Received:
    3,455
    Well as a small businessman I appreciate the support of the Dems, though I don't think it is probably as effective in stimulating the economy as say doubling food stamps or temporarily eliminating the FICA tax on the first $29k in earnings.
     
  19. ryan_98

    ryan_98 Contributing Member
    Supporting Member

    Joined:
    Nov 16, 2008
    Messages:
    2,473
    Likes Received:
    919
    party line vote because it's an election year and republicans can't afford to give the dems a W this close to november.


    this will probably be the excuse though:

    http://www.latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,0,2992847.story
     
  20. SamFisher

    SamFisher Member

    Joined:
    Apr 14, 2003
    Messages:
    59,951
    Likes Received:
    38,116
    Yeah, arguing that the cost of tax cuts is too much is something that Republicans really can't do these days, since they are basically willing to hold the whole government hostage until they get the far-larger Bush tax cuts extended for top earners on the theory that they pay for themselves
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now