New NFIB Research Projects 200,000 Additional Jobs if Small Business Expensing Bill Becomes Law

Date: February 09, 2015

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New Research
Projects 200,000 Additional Jobs if Small Business Expensing Bill Becomes Law

NFIB Research
Foundation estimates that US economy could add 200K jobs and boost output by
$18 billion if 179 expensing provision is made permanent


Washington, DC (February 9, 2015)The National
Federation of Independent Business (NFIB)
today released new research
projecting nearly 200,000 more jobs and billions in higher economic
productivity if Congress and the President agree to permanently increase the
amount that businesses can deduct for capital investments, also known as small
business expensing.

“Reducing the cost of business investment leads to more
business investment,” said NFIB CEO and President Dan Danner.  “If
there’s a good argument to be made against that result I’d like to hear it.”

Congress this week will vote on a measure to make permanent the
current thresholds in section 179 of the IRS code, under which businesses can
deduct from their tax obligation the full cost of new equipment or capital
upgrades.  The problem, according to Danner, is that this small business
tax incentive has routinely expires every year unless Congress extends it—often
retroactively.  Making the provision permanent would also make it
predictable, giving businesses the confidence they need to invest in
themselves, create jobs and boost the economy.

“Recently small businesses have had to wait until the last
minute to decide whether to make big investments,” he said.  “It’s a very
inefficient system that freezes big decisions until the end of the year and
very likely discourages a lot of economic activity that would be otherwise very
good for local communities and the broader economy.

The legislation would permanently restore the $500,000
threshold, which fell all the way down to $25,000 this year.

“That would encourage more businesses to make bigger
investments, which would generate a lot more economic activity,” said Danner.  “Businesses that
know they can recoup the cost of big-ticket investments, like new machinery or
vehicles or farming equipment, are a lot likelier to make the commitment. 
It’s good for the purchaser, of course, but it’s also good for the firms that
manufacture and market the products because they’ve got more buyers.  It’s
a way to spur the economy and get things moving for businesses on both sides of
the transaction.”  

While there appears to be bipartisan support for the
legislation, which is expected to receive a vote on Friday in the House, Danner
said that members who are still on the fence may be persuaded by the potential
for substantial job growth.

“This is important research because it quantifies the
benefit in a way that we think is persuasive,” he said.  “Every member of
Congress wants to encourage more jobs and based on our research that’s a very
fair expectation.  This is good policy for small business and it’s very
good policy for Americans who want jobs and a stronger economy.”

Click here to
view the full research report.  For more information about NFIB, please



NFIB is the nation’s leading small
business advocacy association, with offices in Washington, D.C. and all 50
state capitals. Founded in 1943 to give small-business owners a voice in public
policy-making, NFIB’s policy positions are set by its 350,000 business-owner
members, who send their views directly to state and federal lawmakers through
NFIB’s unique member-only ballot. NFIB’s mission is to promote and protect the
right of our members to own, operate and grow their businesses. More
information is available online at


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