Tax Deductions for Small Businesses: Keeping Current Dollar Amounts for Property Expensing in Place (H.R. 4457)
Do you support or oppose this bill?
What is H.R. 4457?
(Updated January 31, 2017)
This bill would keep some current tax deduction levels in place for small- to medium-sized businesses. The bill deals with Section 179 of the IRS Code, which deals with property expensing. From 2010 to the end of 2013, the dollar limit for property-related tax deductions has been $500,000. As of January 1st, 2014, this dollar amount dropped to $25,000. The bill would restore those amounts to the 2013 level and retroactively apply the 500K level to all of 2014, in addition to permanently indexing the expensing limits to inflation. The US House Committee on Ways and Means passed this Act on April 29th, 2014.
Argument in favor
These deductions are lifesavers for businesses trying to survive in a post-recession economy, and dropping the total dollar amount of such deductions would railroad them.
Argument opposed
Substantially lowering tax deductions for businesses would aid in making sure that those businesses do not overextend their credit lines. Increases the deficit by $73 billion over the next decade.
Impact
The bill most directly affects small- to medium-sized businesses at tax time.
Cost of H.R. 4457
The staff of the Joint Committee on Taxation (JCT) estimates that enacting the bill would reduce revenues, thus increasing federal deficits, by about $73 billion over the 2014-2024 period.
Additional Info
Media:
The Latest
-
Protests Grow Nationwide as Students Demand Divestment From IsraelUpdated Apr. 23, 2024, 11:00 a.m. EST Protests are growing on college campuses across the country, inspired by the read more... Advocacy
-
IT: Here's how you can help fight for justice in the U.S., and... 📱 Are you concerned about your tech listening to you?Welcome to Thursday, April 18th, communities... Despite being deep into the 21st century, inequity and injustice burden the U.S. read more...
-
Restore Freedom and Fight for Justice With GravvyDespite being deep into the 21st century, inequity and injustice burden the U.S., manifesting itself in a multitude of ways. read more... Criminal Justice Reform
-
Myth or Reality: Is Our Tech Listening?What's the story? As technology has become more advanced, accessible, and personalized, many have noticed increasingly targeted read more... Artificial Intelligence