Tuesday, June 15, 2010

House passes tax cut for small-business investment. GOP Votes "NO"

WASHINGTONLong-term investors in some small businesses would escape capital gains taxes under a bill passed by the House Tuesday as congressional Democrats tried to revive their jobs agenda.

The bill would also increase tax deductions for startup expenses by new small businesses. The House passed the bill on a mostly party-line vote of 247 to 170.

House Democrats plan to merge the bill with legislation creating a $30 billion fund for community banks to increase lending to small businesses. The House could vote on the lending bill as early as Wednesday, sending the entire package to the Senate.

White House press secretary Robert Gibbs said President Barack Obama was grateful for the House vote but that he wants Congress to pass other pending job creation measures and help for cash-strapped states and the long-term unemployed.

Congressional Democrats started the year with an aggressive agenda of passing a series of bills designed to create jobs. Many of the proposals stalled as lawmakers, after hearing from angry voters, became wary of adding to the federal budget deficit.

The tax provisions passed Tuesday were included in a bill that passed the House in March but stalled in the Senate. House Democrats hope the new package will fare better, boosting investment and lending for small businesses struggling to recover from the nation's worst recession in decades....................

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