It shows Obama government’s earnestness to address the pain points of small businesses in the United States. New proposals made by the President for small businesses are welcome except some, seems as if he himself wants to follow please to all approach. After all, any government has to address each section, be it small business owners, working professionals or anybody else.
It is really an appreciable step of the government to simplify the tax codes for small businesses. It will allow small business owners to be free from the lengthy and complicated tax procedures, as they have been more labyrinth with understanding federals tax laws and filling levied amount than bearing the actual tax burden.
Entrepreneurs have always been complaining about the time they need to spend on paying the taxes in complex procedures and it is more time consuming for them; which ultimately leads to losses further. As per a study conducted by National Small Business Association during last year, more than half of the entrepreneurs assumed hectic tax code as more painful than paying off the taxes.
Another welcome step that the government has proposed is allowing small businesses to employ the foreign skillful manpower. This would help the small business owners to hire more skillful talent, of course on lower wages. So, ultimately it will increase the productivity of the small businesses and help them reduce their cost of operation.
However, Government’s move to raise the minimum wages to $ 9 per hour to existing $7.5 hour per hour. This could be a salutation for the lower level manpower who have been afflicted with the economic slowdown indirectly. Also, it would have the negative impact on the small business owners, especially from the labor intensive verticals. It will increase their cost of operation and hence they will be more prone to look for cheaper ways, e.g. foreign manpower.
But won’t government’s proposal to allow small businesses to hire foreign skilled manpower have side effects on employment? Answer needs time. For now, Obama has tried to address most of the major issues that have been pain areas of small businesses.