House Tax Bill Provides Some Help for Small Businesses, but Doesn̢???t go Far Enough for Long-term Relief
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, on today̢???s passage by the U.S. House of Representatives of the Tax Increase Prevention Act of 2014̢??legislation that would give a retroactive, one-year extension for some small business-friendly tax credits that expired at the end of 2013
The U.S. House of Representatives passed legislation today that gives a retroactive, one-year extension of tax credits that expired at the end of 2013, such as the wind production tax credit and Section 179 provision, which will provide some much-needed relief for small businesses that rely on them. While this short-term fix is a step in the right direction, we need a long-term extension of tax credits that are vital to small businesses, as well as action on tax provisions that are expiring this year. What̢???s more, the House deal includes several provisions that benefit large corporations, which can give them an unfair advantage over small businesses that are struggling to compete.
The Tax Increase Prevention Act would extend the Section 179 tax provision, which allows small businesses to claim deductions for qualifying equipment or software. Additional tax credits included in the deal that impact small businesses are the production tax credit for wind and other renewable resources and bonus depreciation for business equipment acquired in 2014.
While the House bill extends retroactively tax provisions that expired at the end of 2013, it does not address any credits that are set to expire at the end of this year. What̢???s more, it includes several provisions that benefit large corporations, while excluding benefits that would help the middle class̢??small businesses̢??? core customer base. Actions like these are counterproductive to moving forward with a tax code that makes sense for small businesses and the economy as a whole.
We̢???re pleased the House included some provisions that will help small firms, but believe legislation needs to go further to provide the kind of support small businesses need to thrive. We hope lawmakers can come together on a long-term plan soon that will give entrepreneurs the certainty they need to plan for the future and help level the economic playing field so they can compete in this tough economic environment.
<p><strong>About Small Business Majority</strong><br />
Small Business Majority is a national small business advocacy organization, founded and run by small business owners to focus on solving the biggest problems facing America's 28 million small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable economy. We are a team of more than 30 working from our 11 offices in Washington, D.C. and 9 states, with a network of more than 45,000 small business owners and more than 2,000 business organizations, along with a formal strategic partnership program of more than 125 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about issues including taxes, healthcare, access to capital, entrepreneurship, workforce development, clean energy and immigration. Learn more about us on our website and follow us on <a href="https://twitter.com/SBM_Media" target="_blank">Twitter</a>, <a href="https://www.facebook.com/SmallBusinessMajority" target="_blank">Facebook</a> and <a href="https://instagram.com/smlbizmajority/" target="_blank">Instagram</a>.</p>