President Obama recently introduced a series of proposals designed to create jobs, increasing access to loans and freeing up credit for small businesses. At this point, the proposals are just proposals, and they would have to go through Congress to become a reality. NEWStat asked VetFinance Group, a veterinary-specific financial, management and marketing services company, how practices could take advantage of Obama’s initiatives if they pass through Congress. VetFinance Managing Directors Steve Dafnis and Ron Paterson provided their insight. NEWStat: One part of Obama’s plan calls for the elimination of the capital gains tax on small business investments. How could a veterinary practice take advantage of this? Dafnis & Paterson: On a macro level, economists tend to agree that a reduction in capital gains taxes will lower the cost of capital, boost investment, and stimulate economic growth. As it relates to veterinarians, those looking to sell their practices will automatically see a profit increase without having to adjust their prices. For example, the practice that sold for $300,000, at a 17 percent capital gains tax rate would net the practitioner $249,000 (this example does not account for other selling charges). With no capital gains tax, that’s an extra $51,000 in your pocket. Other types of investments, (stocks, bonds, mutual funds, real estate) could also be sold. With unexpected cash in pocket, any new veterinary practice investments now appear much cheaper. Expect an increase in all types of veterinary capital investment.