This month Let’s Talk Biz focuses on politics and how the political process impacts small business and non-profits. Since small and new businesses over the last two decades have been responsible for creating 2 out of every 3 net new jobs, and today the country’s 28 million small firms employ 60 million Americans, half of the private sector workforce; Let’s Talk Biz set out to find out what changes have been made to stream line or eliminate ineffective, overly burdensome, and outdated rules. We learned more aboutH.R. 9 – Small Business Tax Act and The Bipartisan Amendment to Defund Harmful Employment Regulations.
This week Let’s Talk Biz’s guest, Congressman Alcee Hastings, informed our viewers about H.R. 9 – Small Business Tax Cut Act and the Bipartisan Amendment to Defund Harmful Gainful Employment Regulation. H.R 9 – Small Business Tax Cut Act allows a qualified small business a tax deduction equal to 20% of the lesser of qualified domestic business income or taxable income. A qualified small business is defined as any employer engaged in a trade or business if such employer had fewer than 500 full-time employees in either 2010 or 2011.
The Bipartisan Amendment to Defund Harmful Gainful Employment Regulation concerns how gainful employment is defined by the U.S. Department of Education. Under the Higher Education Act, proprietary colleges and universities and career training programs are required to offer programs that lead to gainful employment in a legally recognized occupation in order to participate in the federal student aid programs. Currently the term “Gainful Employment,” is defined according to job placement and graduation rates. The U.S. Department of Education is now promulgating a regulation that defines “gainful employment” through a complex matrix that examines the student loan debt-to-income ratio of graduates to the student loan repayment rate of gradates in the programs. The proposed regulation would require the U.S. Department of Education to approve every new program created at a proprietary institution prior to the start of the program. The amendment would prohibit the use of funds for the implementation of the draft regulation the Department issued on October 29, 2010 and would prohibit the Department from promulgating or enforcing new regulations regarding gainful employment.
It is obvious that the act and the amendment will have a profound impact on small businesses and non-profits. We hope that by bringing your attention to these new developments you will be more knowledgeable and better prepared to take part in the political process. To learn more about how you can submit your ideas on how to streamline, improve, or simplify small business rules and regulations directly to the White House Office of Management and Budget visit letstalkbiz.biz.
Tune in next week Let’s Talk Biz talks with Ms. Molly Brogan, Vice President of Public Affairs for the National Small Business Association. Until we meet next week, keep talking biz. Letstalkbiz.biz.
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