By the end of this year Congress must decide the rates for income tax, estate tax, capital gains and dividends. The rates that are decided will determine whether or not Americans will choose to invest in businesses. Which way will the rates go or how much? Most are in favor that the shift in power will mean a longer extension of existing Bush-era tax cuts and therefore tax cuts in general.

However, do not expect any more enhancements to the Small Business loan programs as Republicans for the most part were against the stimulus bill, favoring a decrease of deficit spending instead. The current incentives that made SBA loans less risky for lenders and more affordable to borrowers are set to expire by the end of 2010. So if you want an SBA loan you should act now!

Climate change initiatives are expected to be stalled indefinitely, but tax breaks for energy efficiency and alternative energy should continue. Also, caps on carbon emissions are not expected any time soon.

A major shifting in legislative bodies also means that the shape of the next big business opportunity changes as well. Certainly the success of innovative renewable and green energy startups may now take longer for owners to realize large returns, so perhaps the next great business successes will be in the areas of coping with current climatic challenges such as rising sea levels, droughts, floods, and so on.

The next business trend just may possibly be one that puts less emphasis on invention and more on maintaining current industries.

Source : Spiegel & Utrera