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Editorial: Economy needs juice

President Obama is looking for new ways to boost the economy, but one good idea is sitting in plain sight - a bill to give tax breaks to small businesses, which has languished in the Senate since midsummer.

President Obama is looking for new ways to boost the economy, but one good idea is sitting in plain sight - a bill to give tax breaks to small businesses, which has languished in the Senate since midsummer.

Senate Republicans have been blocking this reasonable measure supported by the administration. The legislation would encourage businesses to create jobs without adding to the deficit. Approving it should be a priority when Congress returns from its summer vacation next week.

The House approved similar legislation in June. The Senate bill would grant $18 billion in tax breaks to small businesses for items such as writing off capital investments, and it would give these firms credits for new hires.

The legislation would cut capital-gains taxes to zero for some small-business investments.

It's not radical. In fact, it's the kind of proposal that GOP lawmakers usually support enthusiastically. But some Republican senators are angered that Democrats won't allow them to offer certain amendments, such as one pertaining to border security and another to lower the estate tax.

Democratic leaders did allow a few GOP amendments in July, before the bill stalled.

The remaining disagreements are not substantial enough to merit the derailment of this needed aid for small businesses still trying to shake off the recession.

But some Republican senators would rather not cooperate on anything with this Democratic president as the November election nears.

Obama this week is proposing other worthy ideas to jump-start the economy. He wants Congress to approve $50 billion in upgrades to roads, rail lines, and airport runways - akin to a front-end investment on the regular highway bill that has stalled.

The president is also expected to call Wednesday for a measure that would allow companies to more quickly write off all of their new investment in plants and equipment through next year.

Companies currently are allowed to deduct new business expenses, but over periods of time ranging from three to 20 years. This proposed change could save businesses more than $200 billion in taxes in the next two years and spur job growth.

The small-business legislation awaiting action in the Senate also would increase government guarantees on popular loans, thus encouraging banks to lend more money. Some loan fees would be waived. The Small Business Administration would be able to increase the size of certain loans from $2 million to $5 million.

In addition, 8,000 community banks with assets of less than $10 billion would be able to tap into a $30 billion fund when lending to small businesses. For some lawmakers, this feature is too close to the unpopular TARP bank-bailout program created by the administration of Republican President George W. Bush in 2008.

Many small-business owners are holding off on expansion decisions while waiting for this proposal to become law. Some have said they could save tens of thousands of dollars in loan fees alone if the measure passes.

That means decisions about hiring and buying supplies have been postponed.

It's a delay that people on the unemployment line can't afford in this weak job market.

The national jobless rate in August climbed slightly to 9.6 percent, showing that the economic recovery is weak and fitful. None of these proposals would turn around the economy quickly, but they would be helpful steps.