Wednesday, September 22, 2010

Tax credit bonanza for small businesses

When you think of a business starting up nowadays, it is rather hard to imagine. A company trying to compete against Walmart, IKEA, IBM or any other company, it is more of a fantasy for a company to gain market share against these companies which have such a large market share. The article tells us about the fiscal polices which the government is taking to help such small-start up companies. By giving the new companies a tax credit, they are helping them gain a small market share which they can still compete and survive upon.
Of course there are certain regulations which a company has to have for them to be eligible for this. The article gives the details as, "To get the credit, a business must have fewer than 25 full-time workers or the equivalent (the hours worked by part-timers count), pay an average annual wage of less than $50,000 and cover at least half the cost of health insurance premiums for their workers." The question remains, will this be enough for these companies to survive in the long run and how long is the government willing to actually giving money to these people?

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