Ohio Congressman Stivers explains effects of debt ceiling legislation

By Jessica O'Neill

The Senate approved the bipartisan bill last week, voting 74-26. The legislation will raise the debt ceiling $900 billion and cut government spending, which Representative Steve Stivers (R-OH) calls "not perfect, but the package as a whole helps small businesses ..."
Benefits to consumers
Had this legislation not been passed, costs of student loans would have been raised as well as costs of cars and gas. The stock market would have gone down and interest rates would have gone up, according to Stivers.
"That was not something I was willing to play around with. We are trying to move the ball forward even if we don't all agree," Stivers said, "We are borrowing 42 cents on the dollar, which is not sustainable."
Stivers said he would have liked to see more cuts up front, but it is a good start and this issue will not be solved over night. 
Senate Minority Leader Mitch McConnell (R-KY) told CBS News the legislation is "a first step - but it is a crucial step toward fiscal sanity."
How small businesses will be affected
"The package as a whole helps small businesses because it ensures the U.S. does not default on its credit," Stivers said.
Stivers explained that, without the legislation, the cost of taking out a business loan would have gone up and hurt people's ability to borrow, and this would have made banks tighten up on credit and tighten up on loans.
However, Stivers said the new legislation would help keep small businesses afloat.
"There will be no tax increases for small businesses and that is a big win for them and their ability to compete," Stivers said, "The president was calling for taxes on small businesses and that did not happen."
Stivers said a U.S. default would have been "catastrophic," leaving many unpaid, which is why he voted for the new legislation.
Related items:

You may like these other stories...

IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.