05/16/2008
State
2008 session to close May 19
The Alabama Legislature will convene for the final day of the legislative session with several tax bills pending on the Senate calendar. NFIB members are urged to call their senator at 334-242-7800 no later than noon on Monday, May 19.
Your small business deserves a tax break
Costs are up and business is down. You and your employees deserve a break, and the Alabama Senate will have the chance to give you one. On Monday, May 19, your senator will vote on House Bill 144, an important bill that could mean thousands of dollars in tax savings to you. HB 144 also helps employees who earn $50,000 or less annually and report no more than $75,000 of adjusted gross income on their individual state income tax return ($150,000 if married, filing jointly). HB 144 will make health insurance more affordable for them by allowing the employees to deduct from their income twice what they pay for their portion of the coverage.
In short, HB 144, with the full double deduction reached in phases after 3 percent triggers for education funding growth, is a win-win for small business and all of Alabama.
The anti-business forces that want more of your tax dollars for themselves are working hard to reduce your savings by cutting the proposed double deduction and by making it almost impossible to ever reach full implementation of the phased-in bill.
Over the next few days, call your senator and let him or her know that your business and your employees need and deserve a double deduction for the health insurance premiums you pay. Ask your senator to vote for an amendment that will be offered by NFIB member Sen. Del Marsh (Anniston), which contains the double deduction reached in phrases after a 3 percent growth for the education fund. Alabama businesses pay more than $6 billion in state and local taxes. Alabama small businesses, those hit hardest when the economy slows down, employ more than 80 percent of all working Alabamians. Call your senator in his or her home district, or call (334) 242-7800 Monday morning
Special 50 percent depreciation allowance needs amendment
Alabama could lose the state income tax bonus depreciation deduction for small businesses if HB 455 is not amended on the Senate floor.
Sen. Jimmy Holley (Elba) will be offering an amendment that would restore the special bonus depreciation, tax free. This depreciation is available to all businesses and applies to most types of tangible personal property and computer software acquired and placed in service in 2008. If this amendment is not adopted, businesses will see a tax increase of $57 million.
House version of the epeal of the federal income tax deduction
About 94 percent of NFIB members voted to oppose the repeal of the federal income tax deduction. Rep. John Knight (Montgomery) has tied the repeal of the federal income tax deduction to the removal of the 4 percent sales tax on food. Alabamians would see an increase in their tax burden of $345 million annually if this bill passes. Call you senator and urge them to vote no on HB 274.
NFIB member hosts event
NFIB member Tim Hightower, Southern Carpet and Hardwood Inc. (Hoover) invited NFIB/Alabama State Director Rosemary Elebash to speak to the City Salesmen's Club in Hoover about legislative issues. Members of the club were supportive of NFIB's legislative agenda, including health insurance premium income tax deductions, the SUTA unemployment tax legislation, restoring the one time 50 percent bonus depreciation and NFIB's opposition to the repeal of the federal income tax deduction.
Federal
NFIB supports freeze on additions to strategic reserve
"We applaud Congress' vote to require a temporary freeze on oil shipments to the Strategic Petroleum Reserve," said Dan Danner, executive vice president, NFIB Public Policy and Political. NFIB wanted members of Congress to adopt additional steps needed to increase domestic supply. Gasoline prices are continuing to increase and Congress needs to look for ways to increase the supply. The U.S. Senate rejected an amendment to expand domestic oil production in the Arctic National Wildlife Preserve and exploration in coastal waters. According to NFIB research, the single largest business cost for more than 10 percent of small businesses is related to energy used in their business. NFIB supports exploring domestic energy supplies in an environmentally friendly way. NFIB believes that states should be able to petition to lift federal moratoriums on offshore drilling in places such as the Outer Continental Shelf.
Labor posters and State posters available to NFIB members
NFIB has established a partnership with the Federal Wage and Labor Law Institute (FWLLI) to offer our members one complimentary All-In-One Federal Labor Law poster per calendar year.
- NFIB members may request one complimentary federal all-in-one labor law poster by visiting www.NFIB.com/federalposter (limit one per year).
- NFIB members can order additional federal and state labor law posters at 50 percent off by visiting www.fwlli.com/NFIB.
If you have any questions, please contact the Montgomery office 334-264-2261.
Sincerely,
Rosemary Elebash
NFIB/Alabama State Director
Rosemary.elebash@nfib.org
