Small Business Owners Appeal Property Tax Increases

As real estate prices continue to decline, some tax appraisal values exceed the market price. Many cities and towns raise appraised values regularly every four or five years. Property taxes, as a potentially significant fixed cost, can cut heavily into profits. So, as the Wall Street Journal reports, some property owners are successfully appealing their assessments. Municipalities are faced with a tough choice: they may have to raise tax rates if total appraised values fall.

Republicans Outline Tax Policy Ideas

Eric Cantor, the House Republican Whip, said his party opposes the proposed job creation tax credit. Cantor said the provision "is fraught with peril and potential for abuse;" he also doubts it will effectively combat unemployment. House Republicans instead propose that the government should help small businesses access credit.

For small businesses, the Republicans support extending net operating loss carry-back provisions, an idea favored by Speaker Pelosi. The stimulus bill already allows businesses to apply 2008 losses to five years of past profits, up from the typical two years. Republicans also favor creating a small business income tax deduction and allowing small businesses to purchase health insurance together.

Cantor also announced the GOP favors extending the first-time home buyers credit, and possibly opening it to all home buyers.

Federal Deficit in FY 2009 $1.4 Trillion

On Friday, the Treasury Department reported the final results for the federal government's 2009 Fiscal Year. Secretary Geithner noted this figure is $162 billion less than they expected in August: Treasury spent $132 billion less on TARP and had $30 billion more in tax revenues than previously expected. As the budgeting process moves forward, officials are considering multiple proposals to make the country's fiscal situation stronger.