No government intervention is going to save a struggling business. Those businesses who continue to fail to innovate with great new technologies like Internet fax will certainly continue to fail.
But the government is doing their best to help struggling companies stay afloat with the new stimulus package. This could be very important for specific businesses that would be strong otherwise, but do to certain economic factors, are particularly struggling—the real estate industry comes quickly to mind.
Fortune magazine reports:
“First and foremost, the Senate bill, proposed by Senate Finance Committee chair Max Baucus (D-Mont.), would extend a helping hand to businesses facing large operating losses in either the 2006 or 2007 tax year, allowing them to write off those losses against gains as far as five years back, rather than the current two-year limit.”
This comes as handsome news to the aforementioned businesses that are struggling. I was concerned that all of the talk of giving tax refunds to the poor and middle class were ignoring businesses that might need that extra boost to keep afloat during the slow-down.
I was pleased to see that there will be a total of $31 billion given out in tax savings to business owners in 2008. Let’s hope the bill is quickly ratified.
Relevant Tags:economy, Internet Fax, Senate, small businesses, stimulus package