President Barack Obama has proposed new tax incentives for businesses in the wake of his first State of the Union Address.

The proposal that we are going to see has some real benefits for small business and even a decent benefit for those starting a small business.  For a current operating small business there will be a $5,000.00 tax credit for every new employee hired in the year 2010 and if you are starting a small business the benefit will be about half that.

This is the kind of stimulus that could get our economy back on track as it will create opportunities for small businesses to invest in order to grow. That growth will generate new jobs and will bring down that outrageous unemployment rate that is staring us in our economic faces.

Whether it has an immediate effect is yet to be seen and the details need to be ironed out and the congress will have to approve it.  Funding for the bill, which would end on December 31st of this year is expected to come from the repayment by the banks from the bailout program of 2008 and 2009.

The President is also asking that all capital gains for small business investment be eliminated as part of the small business stimulus plan as well as a tax credit for those businesses that invest in new equipment and plants.

This article was contributed by Will Stone