THE US President, Mr Barack Obama, has proposed
to grant tax relief to small businesses as prt of his USD 300 bn fiscal
package to rekindle growth in the economy.
Mr
Obama has proposed to extend the tax cut for a year and make it bigger — trimming
the Social Security taxes paid by workers to 3.1 percent. Obama's plan is to
reduce Social Security taxes paid by small businesses from 6.2 percent to
3.1 percent.
Obama told a joint
session of Congress that his plan "will provide a
tax break for companies who hire new workers, and it will cut payroll taxes
in half for every working American and every small business. It will provide
a jolt to an economy that has stalled, and give companies confidence that if
they invest and if they hire, there will be customers for their products and
services."
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