U.S. Sens. Bob Casey (D-PA) and Susan Collins (R-ME) are pushing for passage of a bill they said would boost the economy and create jobs.
The Small Business Tax Certainty and Growth Act aims to make it easier for small businesses to start, invest in capital and hire workers, but most importantly, Casey said it would mean more stability.
“We know the economy has come a good distance and recovered a good bit,” said Casey, “but we still have a ways to go, were not where we need to be. One of the problems we’re having is job growth as it relates to small businesses is being, I believe, held back for a number of reasons; one of the reasons being uncertainty.”
According to a statement from Collins, the bill would make permanent the maximum allowable deduction under Section 179 of the Internal Revenue Code. That section allows small businesses to deduct the cost of acquired assets. But the benefit is unpredictable in its current form, having changed three times in the past six years. This bill would permanently set the maximum allowable deduction at $250,000, indexed for inflation. To keep larger businesses from benefiting it would be phased out as acquisitions exceed $800,000.
The measure would also permanently double the deduction for business start-up expenses from $5,000 to $10,000. This provision is targeted to provide a benefit only to small businesses by phasing out the deduction as start-up expenses exceed $60,000. Casey said the bipartisan bill will boost jobs by boosting small businesses.
“Small businesses created 64 percent of net new jobs over the last 15 years,” said Casey, “and 80 percent of the job growth in January of this year were small and medium-sized businesses, according to the payroll processor ADP.”
Casey and Collins spoke on the Senate Floor last week, pushing for the bill’s passage. It’s currently in the Senate Finance Committee and unclear when, or if, it will move forward.