Obama wants small business tax, investment breaks

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WASHINGTON (AP) — The Obama administration wants Congress to enact or expand tax breaks for small businesses and remove barriers to business startups. The legislation seizes on existing bipartisan proposals that could win support even in an election year.

President Barack Obama plans to send the legislation to Congress Tuesday. The package includes measures to make permanent a zero capital gains tax rate for investments in small businesses. It also would extend for a year the ability of businesses to immediately deduct all of the costs of equipment and software purchases.

Obama also is proposing a new 10 percent tax credit for small businesses that add jobs or increase wages in 2012. In addition, the legislation would make it easier for new startup companies to raise money and go public.