Congressman Proposes Entrepreneurial Tax Break

Congressman Patrick J. Kennedy (D-R.I.) today introduced a bill that would allow small business owners to embark on a onetime deferral of income taxes in order to reinvest in their enterprises.

The Generating Reinvestment Opportunities With (GROW) America's Small Businesses Act of 2009 would allow the deferral to go unpaid for up to two years, with taxes due optionally spread out over installments if needed. The representative's office described the proposal as "interest-free, short-term loans" that "would strengthen small businesses at a minimal cost to the federal government."

"As the backbone of the American economy, the growth and expansion of small businesses are critical to our nation's economic recovery," Kennedy stated. "This bill provides a flexible and tangible benefit for small business owners ... A little extra help can go a long way in helping to bring a business to the next stage of growth, growth that will translate into job creation."

Kennedy also launched an online resource guide for Rhode Island small businesses, here. See more information about the bill here.