If passed, a bill currently in the Senate would allow small business owners to write off certain major business expenses in the first year, rather than depreciating these costs over time.
U.S. Sen. Mark Begich introduced the provision as an amendment to the Small Business Jobs and Tax Relief Act.
Begich amended the act to include flexibility on depreciation of improvements such as carpet, sheetrock, lighting and equipment small business owners purchase for their businesses.
“All that expense now can be written off in the first year,” Begich said in a recorded presentation on the Senate Floor, July 11 (goo.gl/0482x). “It is simple, yet has huge impacts.”
The IRS has schedules to depreciate these improvements over the course of more than a decade. Begich proposed what he calls “accelerated” or “bonus” depreciation.
A small business in the 25 percent tax bracket that spends $100,000 on improvements or equipment can receive a tax break of $25,000 in the first year.
The full bill would offer a tax credit when a small business increases its payroll through bonuses, raises or hiring a new employee – equivalent to 10 percent of the increase. The credit would be capped at $500,000.
Comments (6)
Add commentNo doubt...
...the House republicans will vote against this tax cut. They're all about tax and spend.
Perhaps they should vote against it.
According to http://www.usdebtclock.org/index.html (probably as accurate as anyone else at this point)
$15,913,047,604,250 was the amount of our national debt at 8:15 this morning. It has taken us a number of years to get in this position and during that time both major parties have had several chances at the levers of power and neither has done anything except drive us deeper into debt.
BTW: if you are a taxpayer your portion of the debt is $139,552
But, but, I thought the
But, but, I thought the Democrats were against all those evil "loopholes" in the tax code? What do you call deductions and credits - loopholes in the left's lingo.
Small businesses don't want credits and other goofy, monkeying around smoke and mirrors. They want a lower tax rate and less regulations. Or put another way - get the government out of my business.
Calypso
Your comment would be great, except that it fails to acknowledge that the oil industry, miners, banks, farmers, and many others in our nation get "subsidies" . They certainly don't want government to "get out of my business." They want these loopholes and tax exemptions to profit
themselves. They want a tax on "everyone but not me."
"Loopholes" are not all "left lingos". I suspect that if one looks at many of them, they are there to benefit large businesses, industries, corporations, unions, banks and others. We still give "subsidies" and tax exemptions to the oil industry even when they are making billions of dollars in profits.
As for regulation one has to be reasonable. There has to be some regulation in many areas of life because the average person can't determine exactly if a certain drug, food, form of health care, certain practices such as putting their money in a bank or stock,is going to benefit or harm them.
This isn't "leftist" nor "liberal" it is businesses trying to make as much profit as they can in any way they can, whether it harms or benefits people.
The world is not "liberal" or "conservative", "left" or "right" it is people trying to benefit themselves as much as possible and trying to avoid being hurt by others.
@ Wally
as usual, very nicely put. you always add an interesting element to the discussion - i think they're often referred to as "facts."
wally - subsidies are not tax
wally - subsidies are not tax credits nor are they deductions. You go on and on trying to pick apart everything I write and then write untruths yourself. Rather than dissect each thought of mine, just tell us your opinion. It's tiresome playing gottcha.
The left certainly has popularized the word "loophole". They probably think it sounds more fancy and evil than deduction. They're funny that way when they're trying to vilify an entity - in this case big oil or corporations.
And when you write these silly statements, no one believes that you're "non partisan" - stop kidding yourself.
"They want a tax on "everyone but not me."
"This isn't "leftist" nor "liberal" it is businesses trying to make as much profit as they can in any way they can, whether it harms or benefits people."
Here's a tutorial explaining subsidies, etc. When you're ready to discuss subsidies, we can start with Solyndra or Abound Solar or ethanol subsidies. Now were those a "leftist" agenda?
http://hotair.com/archives/2011/05/03/oil-company-subsidies-clarified/
"Contrary to what some in politics and the media have said, the oil and natural gas industry currently enjoys no unique tax credits or deductions. Since its inception, the US tax code has allowed corporate tax payers the ability to recover costs and to be taxed only on net income. These cost recovery mechanisms, also known in policy circles as “tax expenditures”, should in no way be confused with “subsidies”, i.e., direct government spending."