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President Obama took the podium yesterday blasting Republicans for not supporting his -- billion dollar small business bill.
The president says the bill is essential to our economic growth.
But what exactly does this -- billion dollar package do.
Let's bring in Alan Murray he's the executive editor for the Wall Street Journal on line Allen.
Program certain going to be here you know -- about -- thirty billion dollars going to be funneled through community banks -- to small businesses.
Really well -- -- pieces one is to inject capital into community banks in hopes that they can make.
More loans to small business that point on why this man -- just jump in thirty billion dollars going through community banks.
I thought some of these community banks were in trouble and these loans would actually be used to crawl all the community banks not create -- in jobs in those regions.
Well you need strong banks in order to have strong small businesses I think small businesses do have a they do have a legitimate problem here.
-- big businesses are sitting on big piles of cash.
Have plenty of access to the credit markets small businesses don't have the same luxury OK but also -- of about thirty billion going to shaky community banks probably a candidate and that what you wanna -- to I don't know like I wanna know what my -- is -- -- -- -- -- him tomorrow to more places your money is -- one is that it -- some very targeted tax breaks -- small businesses and the others to expand small business loans.
Through the government are guaranteed by the government so.
So that's where so the tax breaks -- to small businesses they last but walked one you.
Most of them I mean I looked at the joint tax committee numbers on this most of them are intended to provide help in the next year or two.
But not over the course of the next ten years because one of the games they're playing here is that.
Trying created build it doesn't cost money over the tenure but suffice go out and spend 101000 books on new computers or something like that.
Some of that I get back because it's a tax credit but it -- to spend 101000 dollars and for.
And if I'm a successful small business -- I mean given a tax break on the equipment that I bought I bought.
On January the Fo us my income tax rate well that's well no you're absolutely right look.
Access to capital for small business is a serious issue and it's one of the things holding back the economy but it's not the biggest thing it's probably not even in the top two.
I mean I would say the top two number one is uncertainty about the economy where we go.
Is this thing really turning around or -- I think that's the biggest issue for any business large or small number and that number two was the one you mentioned.
Which is uncertainty about the tax and regulatory environment they're going to be operating it.
What is gonna happen to the -- that affect and we know they're going up.
I'm not sure we know all the contours of that what is gonna happen to the health care cost them and that's abatement -- up on what happened -- make a judgment formally.
That -- -- billion dollars package to aid small business.
-- say it's a boss wants you I don't say it's a bust but I I I think it's probably a third level of priority after the two things.
I don't know about -- OK we've already seeing how the home home all the homes games have backfired miserably we had the words -- housing numbers last week.
I guess ever tomorrow we're gonna get probably the worst auto sales number and decades at least years.
These kind of schemes have all backfired bench our business to make loans if the government would just stuff away a lot of banks is sitting on a lot of cash.
Ultimately you guys are -- that you guys are trying to get me to say that the small business package is going to be bad for the economy I just don't I don't see that I think so I'd have large and it's good but it's not it doesn't it doesn't hit the two big things that are out there uncertainty about the economy and uncertainty about the tax and right and this apparently part is what's gonna prevent small business and going on buying new equipment -- the biggest and therefore then they don't get these fat that's the big -- who doesn't mean that this is back out.
Like just having -- help it's if it's not the answer to the big brown yes.
We need to keep throwing thirty billion dollars every month it to help -- that the margin you know that that's sort of -- -- -- -- -- didn't immediately and keep in mind that face that this is of the joint tax committee.
Has said this pays for itself part of it is because they're fairly narrow tax breaks and get some of that money back in later years part of it is they're they're actually raising some taxes and some other places on business to help pay for so last let me -- one of these have a minute he would cut food stamps and a couple years I can't wait -- they bring that went up and a couple -- -- I think everybody is coincidental -- Good against the Alan Murray it is placebo -- -- -- -- billion dollars was placebo.
That's what it is is it.
I have to take your -- I'm not critics have given it doesn't address the two big issues that are facing its patent and did a much of a plan that and a -- Australian -- it's always a pleasure to join this -- -- fifth but thank you very much and I just going to be here like it now.
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