NFIB

Tax Issues Loom in 2006: NFIB works to protect your bottom line
01/ 23/ 2006

Making plans for an unpredictable future is hard. That’s why NFIB is working nonstop to pass permanent tax relief at the federal level. The House and Senate both passed expensing and alternative minimum tax bills at the end of 2005, but both issues await final resolution in conference.

Extension of expensing relief: Set to expire in 2007, this expensing relief provides small businesses with a $400,000 investment limit and allows them to expense up to $100,000 each year, instead of depreciating equipment. If this relief isn’t made permanent, the levels will revert back to a $200,000 investment limit and only permit $25,000 each year in expensing.

Alternative minimum tax: The House also recently passed a bill to extend relief from the alternative minimum tax, which is expected to affect 30 million taxpayers by 2010 if relief is not made permanent.

Death tax: One major piece of tax relief stalled in the Senate is the death tax, which is set to return to its full 55 percent in 2011. After years of hard work by NFIB and its members, the Senate was set to vote on permanent repeal last summer. But the devastating Gulf Coast events dramatically altered the congressional agenda.

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