August 2, 2011 by Aaron Scott Young
Yesterday Congress finally came together and passed legislation to raise the debt ceiling. Regardless of your politics, this move needed to be made. Failure to do so would have resulted in higher interest rates for everyone in America. While the 24 hour news wonks are all talking about how this law has warts on it, at least there seems to be one winnerâ€¦the small business owner. Take a look at this article from Fox Business News for more details.
The debt ceiling resolution ultimately amounted to a $2.4 trillion increase in the debt limit, so long as lawmakers can cut that same amount or more in spending. If a committee, set up by the debt proposal, cannot come up with spending cuts, a “trigger” in the plan will enact cuts in the government’s budget. (http://smallbusiness.foxbusiness.com.)
The biggest victory here for the small business owner is the aversion of any new tax increases. While some authorities remain uncertain about future tax hikes and the implications that this bill may hold for small business owners, at the moment things look optimistic.
As reported in the article, Ray Keating, chief economist for the Small Business & Entrepreneurship Council, said, “Â They didn’t just increase the debt ceiling as we have in the pastâ€”it is linked to what is actually going on, on the spending side. “The president and the majority in the Senate had to move away from their position that tax increases had to be a part of the deal. That is a huge win for small business owners.”
The upside to the article is that once again small business owners are seen as the backbone of America and the one thing that is keeping the economy afloat. While we didnâ€™t ask to play Superman, that is our job. I offer my gratitude to you for always showing up and powering through.
Drop me a line with your thoughts to Congressâ€™ resolution to the debt ceiling and how you feel it will affect business owners like you.