I do not believe for a minute that the tax breaks passed by the Senate recently are anything more than political maneuvering. On the one hand, if the government is finally recognizing small business as the engine that creates jobs in our country that would be a good thing.

I do not believe for a minute that the tax breaks passed by the Senate recently are anything more than political maneuvering. On the one hand, if the government is finally recognizing small business as the engine that creates jobs in our country that would be a good thing. Either way, tax breaks for plants and equipment are not much good without a reason to build or buy them.

Provisions raising SBA loan limits and other items will help some small businesses in unique situations but, in my view, the primary result will be an increased Federal deficit, which is not good in the long term. My biggest fear coming out of The Great Recession is inflation. Inflation has no redeeming social or economic value and as one about to enter his 60s it may be the one thing that really messes up my exit strategy.

Small business and all business leaders will invest in an economy that promises a return on that investment. They will figure out ways to get as many tax breaks as they can. They will make the investment when there is a return available whether or not there is a tax break. We need the administration to lead, not worry about what is going to happen in November. (I sense they are in full campaign gear already.) The posturing on the other side of the aisle is not so fabulous either. This economy is not going to get back on track until Washington figures out how to stem the tide of spending and make a plan that we, the great unwashed, will buy into enough that we will get our checkbooks back out and start spending again.  

You can find a summary of the bill here.