Businesses Concerned About Broad Array Of Expiring Tax Breaks
As Congress resumes, a growing number of tax provisions are in jeopardy of expiring. The Broad Tax Extenders Coalition, made up of more than 2,000 businesses, on Thursday sent a letter to Congress urging legislators “to act immediately on a seamless, multiyear or permanent extension of the expired and expiring tax provisions.” According to The Hill the letter warned that failing to extend the breaks would amount to “a tax increase” for US businesses that would “inject instability and uncertainty into the economy and weaken confidence in the employment marketplace.” There were more than 50 tax incentives that expired at the end of 2014, The Hill notes, including a tax credit for business research and a provision that allowed for faster investment write-offs.
What Happens Next
There are numerous tax provisions set to expire December 31. Despite pressure from businesses on the issue, it’s uncertain whether Congress has the will to act in a timely manner on the issue. Bloomberg Government notes that despite review of certain measure by the Senate Finance Committee, the committee’s Chairman, Orrin Hatch (R-UT), noted that it’s up to Senate Majority Leader Mitch McConnell to “fit tax extenders into the packed fall legislative schedule,” and he has currently been “too tied up with legislation related to the Iran nuclear deal” and government funding to look at the expiring provisions. The piece notes that the “indecision in Washington” has created “louder” calls for long-term extenders, but whether Congress can or will take action is unclear, leaving businesses with increased uncertainty.
What This Means For Small Businesses
Small businesses will bear the brunt of costs if business-friendly tax provisions continue to languish due to political inaction. Congress needs to take action to prevent the loss of tax provisions that help small businesses across the US grow.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.