Ohio Congressman Stivers explains effects of debt ceiling legislation
by AccountingWEB on
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.
You may like these other stories...
Did you know that the tax code allows you to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes, and others kinds of casualties? But the law imposes several restrictions.Relief...
Inversions: Loophole Is the ProblemJacob J. Lew, the U.S. Treasury Secretary, published an opinion piece in the Wall Street Journal that "the system has become full of inefficiencies and special-interest loopholes. That...
School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Upcoming CPE Webinars
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
FRF for SMEs Series--Measurement and Disclosure Principles for various Consolidations and Business Combinations, Part 4B
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
In this session we'll review best practices for how to generate interest in your firm’s services.
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.