WASHINGTON, D.C.- In their ongoing effort to grow the economy and make it easier for employers to hire additional workers, U.S. Senators Susan Collins (R-Maine) and Bob Casey (D-Pennsylvania) today spoke on the Senate floor urging Senate leaders to advance bipartisan legislation that would allow small businesses to plan for capital investments that are vital to expansion and job creation. Specifically, Senators Collins and Casey are urging leadership to bring the Small Business Tax Certainty and Growth Act, which they authored and introduced in June, to the floor for consideration. Their bill would not only help small businesses plan for investments, but it would also lower the expenses associated with starting a new business and reduce administrative burdens placed on small businesses.
"As American families continue to struggle to get the jobs they need at wages they deserve, it is more important than ever for members on both sides of the aisle to come together on legislation to promote economic growth and job creation," said Senator Collins. "Putting people to work is my number one priority, and I am pleased to be working with Senator Casey on this bipartisan plan that will help employers around the country grow, succeed, and create good-paying jobs."This is a commonsense proposal that will increase certainty for businesses, increase economic activity and increase the pace of job creation," Senator Casey said. "Our legislation contains ideas that both parties have supported in the past. Passing this bill will bring the focus back to jobs and allow members of both parties to come together to grow the economy."
On Wednesday, Senators Collins and Casey sent a letter to Senate leaders on both sides of the aisle urging them to work together to advance this bipartisan legislation, which has received the support of the National Federation of Independent Business, National Restaurant Association, Americans for Tax Reform, National Taxpayers Union, Pennsylvania Chamber of Business and Industry, Maine State Chamber of Commerce, Maine Society of Certified Public Accountants, and the Manufacturers Association of Maine.
BACKGROUND:
Collins-Casey "Small Business Tax Certainty and Growth Act" would allow small businesses to plan for capital investments that are vital to expansion and job creation. This bill would ease complex accounting rules for the smallest businesses; and, it reduces the tax burden on new ventures.
Specially, it would ease the tax burden on new employers by permanently doubling the deduction for start-up expenses from $5,000 to $10,000.
Extend the so-called "bonus depreciation," and the 15-year depreciation for improvements to restaurants and retail facilities. Unfortunately, these important provisions were allowed to expire at the end of last year, causing great uncertainty and thus discouraging investment and job creation.
Provide small businesses with the certainty they need to make long-range investment plans by making permanent the maximum allowable deduction under Section 179 of the Internal Revenue Code. Section 179 allows small businesses to more rapidly deduct the cost of acquired assets. The amount of the maximum allowable deduction has changed four times in the past seven years, and is usually addressed as a year-end "extender," making this tax benefit unpredictable from year to year, and therefore difficult for small businesses to take full advantage of in their long-range planning. This bill would permanently set the maximum allowable deduction at $250,000, indexed for inflation, and ensure that only small businesses can avail themselves of the benefit by phasing it out as acquisitions exceed $800,000.
Allow more companies to use the simpler cash method of accounting by permanently doubling the threshold at which the accrual method is required, from $5 million in gross receipts to $10 million, indexed for inflation. The bill also expands the ability to use more simplified methods of accounting for inventories, reducing complexity for small businesses that produce goods.