Small Business

--Overview--

President Ford believes the small business sector of our strong economy is vital to job creation, competition and technological innovation.

The small business sector of the United States includes nearly 10 million enterprises, employs 58 percent of the private labor force, produces approximately 48 percent of the gross business product, and provides a livelihood for 100 million Americans.

To strengthen this vital part of our economy, President Ford has:

• Cut by 12 percent the number of forms required by Federal reports, thereby reducing the paperwork burden on America's businessmen and businesswomen, and eliminating untold millions of dollars spent by the Federal agencies just for reading, handling, and filing them.

• Proposed reducing the maximum corporate tax rate and making permanent the currently temporary exemption on the first $50,000 of income. If approved, these tax cuts will affect thousands of small firms and help generate thousands of more jobs.

• Proposed a change in the Federal estate tax laws to make it easier to continue the family ownership of a small farm or business. The proposed changes would stretch out the estate tax payment period so that Federal estate taxes could be paid out of the income of the farm or business. No payment would be required for five years. Twenty years would be allowed for full payment of estate taxes at a 4 percent interest rate. This reform would help insure the survival of smaller farms and businesses for future generations and allow them to expand their current operations.

• In addition, the President has proposed eliminating the 50 percent marital deduction on estate taxes, so that 100 percent of an estate could be transferred tax free to a surviving spouse. He also has proposed an increase in the estate tax exemption from $60,000 to $150,000.

• Proposed a 33 1/3 increase in the Small Business Administration's leading guarantee authority - - from $1.5 billion to $2 billion - - despite the austerity budget he submitted to Congress. This will help stimulate the private business sector and create more jobs.

• Named the Administrator of the U.S. Small Business Administration to serve on the President's Economic Policy Board which oversees the formulation, coordination and implementation of the Administration's economic policy. It is the first time small business has been represented at such a high level of government.

• Asked for reduction in capital gains taxation at an accelerating rate over a period of years. This would remove the tax incentive for small business mergers and made it possible for local interests to acquire and expand sucessful [successful] small businesses. It would unlock investments in business enterprises and permit the most productive employment of capital resources.
• Proposed tax incentives to encourage broadened stock ownership of low and middle income working, Americans by allowing deferral of taxes on certain funds invested in common stocks. Widespread stock ownership would promote more stable financial markets, strengthen economic, social, and political support for the free market system, and help employees build a reasonable estate.

But President Ford knows that the Government should not -- and cannot -- run America's business:

"I will do my part, but the rest is up to you . . . I challenge the businessmen and businesswomen of America, and all the productive people of this great country, to roll up your sleeves and show the world that our great free-enterprise system is still hale and hearty, in this Bicentennial year and for the future."

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