Date: 2014-06-12
Speaker: JACKSON LEE (democrat)
Chamber: H

Mr. Speaker. I rise to speak on H.R. 4457. Americas Small Business Tax Relief Act Of 2014. H.R. 4457 permanently sets the IRC Section 179 small business expensing maximum limit at $500.000. In order to remain profitable and be competitive. small business like limousine owners as represented by the National Limousine Association. farmers and ranchers. and others must continually upgrade and replace equipment. buildings. and storage facilities. A This is a very important provision due to its immediacy for small business owners. With provisions like Section 179. businesses are able to reduce maintenance costs. take advantage of laborsaving advances. become more energyefficient and adopt technology that is environmentally friendly. Section 179 allows a taxpayer to deduct the cost of new or used business property rather than depreciating the cost over a longer period of time. The immediate expensing provided by Section 179 allows these businesses increased cash flow for purchases that might otherwise be delayed or that would require them to incur debt expense. The bill would make permanent rules that allow small businesses to expense capital investments in new equipment and property. making permanent provisions that provide that the maximum amount that a taxpayer may expense is $500.000. Unfortunately Mr. Speaker. this bill is estimated to cost $73.1 billion over 10 years and it is not paid for. which means that the deficit will necessarily go up as a result. The Congressional Research Service has reviewed quantitative analyses of the tax break and found that. ". . . accelerated depreciation in general is a relatively ineffective tool for stimulating the economy." Mr. Speaker. I understand the point that supporters of the bill argue: that it is necessary to ensure that small businesses can continue to make new investments in property and equipment even as costs rise. affecting more than 10 percent of smallbusiness tax returns. They say it lowers the cost of capital for tangible property used in business. eliminates depreciation recordkeeping requirements with respect to expensed property and removes a disincentive to buying more efficient cooling and heating equipment. Democrats generally support increased expensing under Section 179 but we cannot sit idly by while the party which has made deficit reduction their rallying cryrefuses to offset the cost of the bill. It must be noted that permanently extending six tax provisions that GOP leaders want to act on would add $310 billion to the deficit. With the bills on the floor today. Republicans are continuing their gross double standard of adding billions to the deficit to fund permanent tax breaks for businesses. while insisting on fully offsetting the cost of initiatives for middle class and working Americans. including veterans benefits. student loans. and unemployment insurance. The Democratic Motions to Recommit would put the brakes on Republicans deficitbusting spending spree. and shorten these tax extensions. Democrats have always strongly supported expanded "Section 179" expensing for small businesses and tax relief for SCorporations. but permanent extensions of tax breaks that cost hundreds of billions are hypocritical and irresponsible. We need comprehensive tax reform that addresses the tax needs of middle class families as well as businesses. In the meantime. Republicans shouldnt be punching hundred billion dollar holes in the deficit. It is time for Republicans to stop ignoring hard working American families. and work with Democrats to create jobs. invest in innovation. and build an economy that works for everyone not just the wealthy. Mr. Speaker. I am prepared to vote for a twoyear extension but these bills must be paid forbecause if they are notfuture generations will suffer because of the unsustainable debt. Let us get back to being fiscally responsible.