Political Quotes

“our amendment is as straightforward as it is effective. Under section 179 of the Internal Revenue Code, a small business can deduct up to $24,000 of the cost of qualifying property placed in service in any given year. The deduction is phased out for taxpayers that invest more than $200,000 per year in qualifying property. For the rest of this year and for all of next year, the Bond- Collins amendment permitted small businesses to expense up to $40,000 in new equipment purchases per year. So the limit would go from $24,000 to $40,000. It would also increase the total investment limit from $200,000 to $325,000. The purpose of our amendment is to encourage small businesses to make important investments that create jobs. It would allow them to write off more of their new equipment purchases immediately. Many small businesses have put on hold investments in equipment that they were planning to make in the wake of the September 11 attacks and because of the poor economy. This tax incentive would help encourage them to go ahead with these critical investments. Direct expensing allows small businesses to also avoid the complicated rules of depreciation as well as the unrealistic recovery periods for many assets. For example, under current law a computer must be depreciated over 5 years, even though we all know from the experience in our offices that the useful life of most computers is 2 to 3 years.”