The House voted to make a tax break that allows small businesses to write off up to $500,000 in equipment purchases permanent on June 19, amid a push to end the annual process of renewing tax extenders. Tax extenders are breaks for individuals and corporations that expire and are renewed on a regular basis.
The vote came in at 272-144, and while several Democrats voted in favor of the bill, the left’s leadership largely opposed the move, according to The Associated Press. The White House has threatened to veto the bill, citing the $73 billion that it will add to the budget deficit over the next ten years.
“Whatever happened to all the rhetoric about getting our fiscal house in order? Out the window,” said Rep. Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee, according to the news source.
The House and Senate are at odds over the fate of the tax extenders, many of which expired at the end of last year. The list of tax breaks has grown over the years to include over 50 provisions, and the cost of making all of them permanent would come to almost $1 trillion over the coming decade, The Wall Street Journal explained.
The House passed another bill that would lessen the tax burden on firms that convert from taxable corporate status to small business status, according to the news source. However, the Obama administration announced that it opposed the legislation.
“Republicans are imposing a double standard by adding to the deficit to fund tax breaks for businesses, while insisting on offsetting the cost of measures that help middle-class and working Americans,” the White House said.
These tax breaks may help your business grow, check out other articles that can give you tips on improving your small business at www.businesslawnews.com.
If you have any questions about this post or would like to discuss your company’s tax,trust, and estate matters , please contact me, Frank L. Brunetti at ScarinciHollenbeck.com.
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