TAX NEWS - June 2010

Obama urges tax breaks, lending incentives

(NECN: Washington, D.C.) - President Barack Obama said he wants Congress to pass legislation that will lubricate small business lending process.

The president urged Congress to "swiftly approve" a set of tax breaks and lending incentives that would spur hiring and growth at small businesses.

"The legislation that's being debated right now would eliminate capital gains taxes for investments in small firms, which will help move capital to these companies across America," Mr. Obama said.

He added that it would provide tax relief to startup businesses, encouraging citizens to become entrepreneurs. A small business fund would also be created, helping to underwrite loans through community banks. Essentially, it would unlock capital community banks want to lend, and small businesses would like to get their hands on for expansion.

"This bill helps fulfill both needs," the president said. "To help us make create jobs without adding to our deficit, we're making the tough choices to pay for these proposals."

President Obama said that, as it stands, the credit flow is working against the recovery effort.