Obama proposes no capital gains tax on qualified small business stock

In Canada, capital gains are 50% taxable and the first $750k of capital gains on small business stock (subject to fairly reasonable definitions) is exempt.<p>I'm curious to know how this compares to other countries; could HNers from elsewhere please reply to this with the details from where they are?

This is cool, but we incorporated in January. If this passes, do we redo it now?

How are they defining small business? There are quite a few definitions that exclude startups.<p>Still, since I've spent the last few months hearing rumors about a bill allowing the president to seize any business that "threatens the economy," this is welcome news indeed.

This looks pretty good -- I'm not sure what kind of event I'd want in 5 years to exit from a bootstrapped company, but having more options is always great.<p>The cynic in me thinks that Obama recognizes startups and small businesses will be the only bright points in the economy, so he wants to do something to make it appear he helped them, or possibly even was the primary reason for their success, by the time 2012 rolls around. However, wanting to be on the winning team isn't a bad thing in public policy.

so let me get this right...<p>currently you pay capital gains (28%) on 50% of the worth of sold stock. this proposal would eliminate that if the stock is held for 5 years?<p>correct?

Won't this just lead to businesses changing their organizational structure, then carrying on as before? For example, instead of creating departments in a big company, one could split it into several smaller companies. (I don't really know the tax law in question, but it sounds like a potential loophole).

So if you own a small biz(with or without partners), the gains you realise from it are tax exempted, if you put the gains back into the company and take it after 5 years. Is that right?

too little too late mister president. I agree with winterspeak in that what we need is severely reduced payroll taxes to stimulate aggregate demand.