WASHINGTON (July 10, 2009)—Organizations such as the U.S. Chamber of Commerce and the National Federation of Independent Business are supporting a bill to double the start-up tax deduction for new small businesses, to $10,000 from the current $5,000.
Besides doubling the start-up tax deduction, the bill also increases the threshold for the deduction phaseout to $60,000 from the current $50,000.
Sen. Jeff Merkley, D-Ore., introduced the Small Business Jump Start Act July 7. Sen. Lamar Alexander, R-Tenn., is co-sponsor.
“Providing a helping hand to small businesses is important at any time, but never more so than now, when so many Americans are out of work,” Merkley said. Small businesses comprise half the U.S. work force and in rural areas represent 90 percent of all businesses, he said.
Merkley read into the Senate record letters from R. Bruce Josten, executive vice president of government affairs for the Chamber of Commerce.
“Allowing small business owners the opportunity to expense additional start-up costs up front would foster more entrepreneurial activity and further encourage the important role of small business as the job producers of our economy,” Josten said.
The bill has been assigned to the Senate Finance Committee, where no hearings have been scheduled as yet.