NATSO joined more than 150 associations representing small business owners from every industry sector in expressing support for America’s Small Business Tax Relief Act of 2014, which seeks to restore the small-business expensing level to $500,000 and permanently index it to inflation.
Since 2003, Congress has steadily increased the amount of investment that small businesses can expense from $25,000 to $500,000. However, these expensing limits were temporary, and in 2014 they reverted to $25,000. For small business owners, these ad-hoc changes created uncertainty that prevented long-term planning.
Introduced by Congressman Pat Tiberi (R-Ohio) and Ron Kind (D-Wisc.), H.R. 4457 would allow small business owners to maximize investment in their companies during years when they have positive cash-flow and provide an incentive for small business owners to reinvest in their business.This is particularly important for small businesses, which are more sensitive than larger firms to problems related to cash flow and more reliant on earnings to fiance new investment.
The associations said in a letter to Congressmen Tiberi and Kind that making the higher small business expensing limits permanent and predictable would greatly reduce uncertainty and reduce the incidence of tax policy driving bad decisions.
“These are critical issues for small businesses, which continue to experience a challenging business climate in the face of stagnant economic recovery,” the letter said.
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