Washington (WQOW) – Senator Tammy Baldwin is behind a new bipartisan bill meant to take away some of the barriers for people wanting to start their own small business.
The “Support Our Startups Act” would provide tax relief for startups.
Recent data shows from 2014 to 2018, Wisconsin had a lower rate of new entrepreneurs than similarly-sized states.
Baldwin said the goal of this bill is to free up more money for startups to invest money in creating jobs, and in turn, grow the local economy.
Senator Baldwin told News 18 that a lot of the ideas in the bill came from talking to Eau Claire small business leaders including the Red Letter Grant program.
“One of the things that was mentioned over and over again was that early investment that you need to make to get ready to open your door, that’s usually a sizable investment,” Baldwin said. “Often people put their savings in there, and that should be recognized in terms of our tax code. It should be less of an impediment for that type of investment.”
The bill would do three things: increase the startup deduction for small businesses from $5,000 to $20,000. Increase the threshold when the deduction phases out from $50,000 to $120,000 and extend the tax deduction so it will cover organizational expenditures – things like the legal costs of starting up a new business.
The legislation is still in the early phases and has yet to be scheduled for any votes.