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.