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Changes in store for small business

By Joyce M. Rosenberg
the associated press
Tucson, Arizona | Published: 11.13.2006
The power shift in Congress brought about by the midterm election foretells some changes in the way the government deals with small-business issues, advocates say.
● Kristie Darien, executive director of the National Association for the Self-Employed's legislative office, predicts the new Congress will undo some of the actions taken by the Republican-led Congress in recent years.
"We think they'll expand SBA (Small Business Administration) loan programs — they've gotten considerable cuts over the years," Darien says. "They'll find ways to strengthen those programs."
● Todd McCracken, president of the National Small Business Association, says chances have dimmed for the now-temporary and more liberal estate tax to be made permanent.
The law exempts the first $2 million of an estate from federal taxes, and the top tax rate is 46 percent. Those numbers will continue to change in a small- business owners' favor through 2010, and then, unless Congress extends the law, they will revert to older and less favorable rates. That's more likely under Democratic leadership, he says.
Small-business advocates note that business owners trying to do estate planning don't know what kind of tax bills their heirs will have to contend with; they don't know whether a family business will be able to stay in the family.
● Carol Kuc, president of the National Association of Women Business Owners, hopes the new Congress will increase tax deductions for meals and entertainment expenses from 50 percent to 100 percent. Small-business owners "do their advertising primarily through entertainment and meals," meeting one-on-one with clients and customers, she said.