Madison (June 12, 2014) – US Representative Ron Kind’s
decision to vote against a bill that he co-sponsored is confusing to Wisconsin
small business owners and they deserve an explanation, said the National Federation of Independent Business
(NFIB) today.
“It’s very
disappointing for small business owners because the bill simply restores a tax
benefit that was in place up until this year and for which there has always been
strong bipartisan support,” said NFIB
Wisconsin State Director Bill G. Smith, who represents more than 10,000
small business owners across the state.
The bill, H.R.
4457, also known as the Small Business Tax Relief Act, would restore the
$500,000 limit that small businesses can deduct from their taxes for investing
in new capital assets like vehicles and machinery. That was the threshold until this year, when
it reverted to $25,000, a level so low that it had the effect of raising taxes
for many small businesses. Additionally,
the bill would allow small businesses to deduct from their taxes the entire
value of the investment in the same year they make the purchase. Currently, they can deduct only a portion of
the depreciated value each year, which is determined by the IRS.
“This
reform would give an immediate boost to small businesses that want to invest in
their own growth,” said Smith. “Moreover, it would accelerate the deductions
for purchasing those assets and that would create an immediate demand, which
benefits other small businesses on the production side, like manufacturers,
wholesalers and retailers.
“Passing
this measure is important for Wisconsin small businesses and it’s potentially
very good for our economy,” he continued.
Kind co-sponsored
the bill earlier this year but voted against the legislation when it was
considered today in the House of Representatives. The
bill passed 272-144 with support from 53 Democrats.
“Small
business owners are very surprised,” said Smith. “This policy has been in place for many years
now. This merely allows them to claim
the full deduction in one year instead letting it drip out over a period of
years. Moreover, it would stimulate
demand for equipment and vehicles, which would boost the economy and create
jobs.
“We respect
the Congressman and we very much appreciated his past leadership on this
particular issue,” said Smith. “His sharp
change of course today is puzzling, however, and Wisconsin small business owners
are disappointed.”
For more
information about NFIB, please visit www.nfib.com.
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