Rep. Kind Proposes Small Business Tax Credit for Rural WI
October 28, 2011
In The News
Public Service News
As the congressional "super committee" studies the federal budget and the president continues to push his jobs bill, a proposal introduced by Wisconsin Congressman Ron Kind of La Crosse is in the spotlight. It's called the Rural Microbusiness Investment Credit Act, and it would give tax breaks to owner-operated small businesses and beginning farmers and ranchers in troubled rural areas.
Chuck Hassebrook, executive director of the Center for Rural Affairs, thinks it's exactly what America needs.
"This proposal by Representative Kind would create the first tax credit ever created specifically to meet the needs of those smallest rural businesses, the rural businesses that provide self-employment or maybe hire up to five people."
The proposed 35-percent tax credit for microbusiness is the right thing at the right time, says Hassebrook, who believes the most important job creator in rural America is small business.
"And in fact, that's especially true in hard times like we're having today. During our last recession, from 2000 to 2003, employment in the smallest businesses grew by nearly 10 percent, while employment was dropping off in larger firms."
Owner-operated businesses with up to five employees would be eligible if they're located in a rural area with significant population loss, low average income, high poverty or high unemployment rates. Hassebrook sees such a plan as critical to getting resources into the hands of entrepreneurs.
"This proposal will really help those rural businesses - even in hard times, or even those struggling to get started - to get together the capital they need to make those critical investments in growing their business, or starting their business."
In introducing the proposal, Congressman Kind said, "Small businesses are the backbone of our economy and critical to our way of life in rural Wisconsin." The bill, HR 2858, has been referred to the House Ways & Means Committee.