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Small Business
While both candidates promise to help entrepreneurs with friendly tax policies, they differ sharply on how much of the tab for employees' health insurance and other benefits they expect fledgling businesses to pick up.

· Allow small businesses first-year expensing of new equipment and technology purchases.

· Establish a permanent tax credit equal to 10% of what a business spends on wages for research and development.

· Issue tax credits to allow individuals to purchase personal, portable health insurance that can move with them from job to job.

· Reduce the corporate income tax rate to 25% from 35%.

· Cut estate tax rate to 15% and increase exemption to $5 million.

"...I will pursue tax reform that supports the wage-earners and job creators who make this economy run, and help them to succeed in a global economy." -- McCain*
· Expand the SBA's direct-lending Disaster Loan Program to extend loans to companies affected by the economic downturn and credit crunch.

· Temporarily eliminate fees and increase the amount guaranteed by the government through the SBA's 7(a) and 504 programs, which insure lenders against defaults on small business loans.

· Extend the stimulus act's Section 179 tax deduction, which increased the amount businesses can write off on their taxes for capital investments in new equipment, through 2009.

· Exempt investors from the capital gains tax on their investments in small businesses and startups if they made their investment when a small company was valued below a certain threshold. That threshold has yet to be defined.

· Offer a 50% refundable credit for employee health insurance premiums paid by the employer.

· Freeze estate tax rate at 45% and increase exemption to $3.5 million.

"We'll work, at every juncture, to remove bureaucratic barriers for small and startup businesses." -- Obama**




NEXT: Complete Election Coverage
Last updated October 29 2008: 12:15 PM ET
Source:
*June 10, 2008, Speech, Washington, D.C.
**June 16, 2008, Speech, Flint, Mich.
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