WISCONSIN SENATOR STANDS WITH SMALL BUSINESS AS HOUSE APPROVES TAX PACKAGE
(December 17, 2015) – Small businesses in Wisconsin will no longer have to wait
until the last minute every year to understand the tax consequences of whether
to invest in new equipment, technology or capital upgrades under a bipartisan
deal unveiled late Tuesday night with the support of Senator Johnson, and
according to the National Federation of Independent Business (NFIB) the result
is likely to be more jobs and a stronger economy.
“As a former
small business owner himself, Senator Johnson went to Capitol Hill with
firsthand knowledge of the struggles that are faced when owning and operating a
small business in Wisconsin. We are so grateful that he stood with NFIB today
to discuss the importance of permanently extending 179 as an important step in
increasing fiscal predictability for the small business sector,” according to
Bill G. Smith, NFIB Wisconsin state director. “Making 179 permanent will
produce great economic benefits for our state’s largest employer, small
business, and Senator Johnson’s voice in the Senate has unequivocally aided in
the extension being part of this week’s budget action.”
NFIB has pushed
for several years to make section 179 of the IRS Tax Code permanent.
Under that provision, businesses can expense up to $500,000 of new investment
in heavy machinery, office equipment, computer technology or many other
big-ticket items that they need. Small business expensing has been a
feature of the tax code for decades as a way to encourage investment and
growth. When the Bush tax cuts expired, however, the amount that small
firms can expense dropped down to $25,000 and expires every year unless
Congress extends it.
“For the past
several years, Senator Johnson has fought to extend the provision because she
understood that the delay caused increased uncertainty for small business and
stalled economic activity at the end of the year. The fact that he has succeed
this year, along with his colleagues in the Senate, is a huge relief for our
members and will no doubt result in new investments and more jobs in
Wisconsin,” continued Smith.
bipartisan deal to make expensing permanent passing through Congress, small
businesses will be finally able to plan out their investments. The tax
package will be a key vote for NFIB in the House and Senate.
benefit encourages businesses to make big investments and the permanency
creates predictability, something small businesses in Wisconsin have been
longing for,” said Smith. “NFIB’s research predicts that nationally we
will see hundreds of thousands of new jobs as a result.”