The “Jobs Bill” that President Obama signed Monday may have sounded like another “stimulus” boondoggle, but it really has a lot of important goodies for the machining world.
The section of the bill that has immediate impact for the machine tool business is the expensing provision. The current rule was scheduled to expire by the end of 2010, which would have reduced the write off from $250,000 to $25,000. The new law pushes up the expensing provision to $500,000. For smaller companies making profits, this provision, which extends through 2011, will mean better cash flow and less money for Uncle.
Other provisions in the bill backstop the Small Business Administration with major new resources to lend to small business. With banks so frightened to find loans and credit lines, this major infusion of guarantees by the Feds should get the bank examiners off the backs of the loan officers.
The ability to use losses for five years to offset profits should also start to lubricate the economy.
The Administration and Congress finally appear to be starting to “get it” as far as small business is concerned. Funny, how an election can focus people’s minds and even gather a consensus across party lines.
It was nice to see Brad Ohlemacher, president of EMC Precision of Elyria, Ohio, a third generation screw machine guy of all things—attending the signing ceremony. To quote the illustrious Rodney King, “Can’t we all just get along?”
Question: Does a law like this actually change business people’s minds regarding expansion and hiring?
4 Comments
Certainly, much needed spindles will be purchased by profitable companies at year end – put the money on your floor instead of in the government’s pocket. This will have a very minor effect, if any, on hiring and expansion. The real problem prolonging / preventing recovery is that there is a crisis of confidence in our “leaders” in Washington. There will be no real improvement in the economy until a proven fiscally responsible, Constitution following government is assembled. “Hopey, Changey” and its resulting instability has us all wondering when and IF we will ever return to the fundamentals that made the United States of America a great and powerful country. In the meantime, the economy languishes in spite of short term incentives designed in great part to get the sitting regime re-elected.
The “jobs bill” will be ineffective at best. This is just a bill that allows the current administration to claim they have done something for the little guy! The little guy is hanging on by his finger nails, has litte or no cash to spend, and will not be able to meet the credit requirements of the SBA! The little guy also will not get little or nothing out of using losses to offset profits, because it takes several years to recoup from a recession of this magnitude. Furthermore, until the current administration is thrown out of office, and a new administration reverses all that has been done by our “liberal friends” we will have no hope of a turn around in the economy, no matter what the media wants us to believe. So, for most of the small guys, their only hope is realistlclly three to four years away. By that time
many of the little guys will be gone. Therefore people will not expand and they will not hire new people until the business cycle improves dramatically!
Mr Hron,
Maybe I’m turning into a marshmallow, but I’m not made at the world like you. This new law which Congress passed and Obama signed was strongly supported by the PMPA, AMT NTMA. PMA abd the entire alphabet. They fought hard for it because it is going to actually make things better for the machining world and small business.
Why not just be a little happy that the recession is over, business is improving and is pretty darn good for a lot of guys and girls_and the Chicago Bears are undefeated,
I know that you are angry and fed up. I’m happy for you because you truly seem to bathe in your angst.
Personally, I prefer to focus on good possibilities rather than retasting bile along with the many lustful haters who abound today.
Dear Lloyd,
I am not mad! I am totally disgusted with the way politicians have allowed their greed, thier lack of common sense, and their belief that the electorate is stupid, to cause them to believe that they can say and do almost anything and get away with it. Their arrogance is leading our country down a very slippery slope that can only lead to our destruction if we don’t
wake up and do something about it.
I believe that the electorate has awakened and I think that the coming elections may cause
our elected representatives, to take a serious look at their actions of the past and cause
them to seriously reconsider their votes and work toward rescinding the various laws and rules that have been shoved down our throats the last four years. If that doesn’t happen,
we are well down the road to dictatorship, and I won’t be surprised if we end up that way.
Personally, I don’t buy the proclamation that the recession is over. The only area of growth I’ve seen has been in the Government. We all know that what has taken place is unsustainable. Government has never been nor ever will be able to produce new jobs.
New jobs are only produced in the private sector. So until we see a reverse in the current
job situation, we will not see the end of the recession.
I hope and pray that sanity returns to our Government soon. When that happens we all will be able to focus on better times and look to the future with hope for our country.