Small Businesses and Short term loans

Can a short term loan solve small business cash woes?

The House of Representatives

Short term loans have been used by small businesses for years to overcome debt. Because of the economy, however, the government is looking into alternative ways of jump starting businesses. The House of Representatives dusted off an old bill and suggested using it to help small businesses and low-income employees, but does it offer the solution needed?

The proposed payroll tax holiday

Illinois Republican representative Aaron Schock and Idaho Democratic representative Walt Minnick had an interesting proposal. The two house members suggested a bill that would offer small business owners a break from paying payroll taxes. Under this bill, businesses with 50 or fewer employees would not pay Social Security or Medicare taxes for a six-month period. Employers and employees pay 6.2% Social Security tax and a 1.45% Medicare tax all year long. The hope was that small business and lower-paid employees benefited from suspending these taxes. According to the Joint Committee on Taxation, over 60 million taxpayers had tax returns with payroll taxes that were greater than their income taxes. This bill could potentially affect 5 million small businesses and over 34 million employees according to the National Federation of Independent Business. ... click here to read the rest of the article titled "Small Businesses and Short term loans "