Small Business and Farmer Tax Certainty

America’s Small Business Tax Relief Act of 2015–H.R.636

Rep. Reed is a co-sponsor of H.R. 636. Tom writes:

john deere

Providing tax certainty is only fair to our small businesses and farmers. As the main source of jobs we should ensure every effort to encourage their growth and expansion. We need to take common sense steps to give our job creators more certainty and more control over their own financial situation. Southern Tier and Finger Lakes small businesses and farmers need to know the tax landscape in advance so that they can make investments in equipment and employees. I am proud to support this bill and our local Upstate small businesses and farmers.

Tom doesn’t mention that this bill would make a temporary tax break for business permanent. Tom sometime opposes making temporary measures permanent, but only those he dislikes. The provision made permanent (Section 179 of the tax code) is also known as “bonus depreciation,” a bonus for businesses; Tom doesn’t mention that.

Here is the CRS summary:

(Sec. 2) This bill makes permanent after 2014 the $500,000 allowance for the expensing of depreciable business property (section 179 property) and the $2 million threshold after which the amount of such allowance is reduced. Both the allowance and the threshold amount are indexed for inflation for taxable years beginning after 2015. The allowance is also made permanent for computer software and qualified real property (i.e., qualified leasehold improvement property, restaurant property, and retail improvement property). The exclusion of air conditioning and heating units from the definition of section 179 property is eliminated.

Tom doesn’t mention the cost to the treasury:

The staff of the Joint Committee on Taxation (JCT) estimates that enacting H.R. 636 would reduce revenues, thus increasing federal deficits, by about $77 billion over the 2015-2025 period.

Because H.R. 636 benefits businesses while doing nothing for individual taxpayers, President Obama has threatened a veto.

Tom wraps this bill in misleading language:

  • tax certainty
  • fair to our small businesses and farmers
  • encourage their growth and expansion
  • common sense steps
  • job creators more certainty and more control over their own financial situation.
  • Southern Tier and Finger Lakes small businesses and farmers

Tom doesn’t mention that the cost of this bill isn’t offset, that it is tax welfare for businesses everywhere large and small, that it does nothing for individual taxpayers, and that the expectation that tax breaks for business “encourage growth and expansion” is unjustified.

© William Hungerford – February 2015

https://www.cbo.gov/publication/49936

https://www.congress.gov/bill/114th-congress/house-bill/636

http://reed.house.gov/press-release/reed-votes-small-business-and-farmer-tax-certainty

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About whungerford

* Contributor at NewNY23rd.com where we discuss the politics, economics, and events of the New New York 23rd Congressional District (Allegany, Cattaraugus, Chautauqua, Chemung, (Eastern) Ontario, Schuyler, Seneca, Steuben,Tioga, Tompkins, and Yates Counties) Please visit and comment on whatever strikes your fancy.
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12 Responses to Small Business and Farmer Tax Certainty

  1. BOB McGILL says:

    http://dailycaller.com/2015/01/29/communist-party-usa-chairman-vows-cooperation-with-democr

    Jan 29, 2015 … Communist Party USA chairman John Bachtell has pledged to work with Democratic Party to advance modern communist agenda and achieve communist goals.

    Communist Party chairman John Bachtell published his essay last week at People’s World, a “daily news website of, for and by the 99% and the direct descendant of the Daily Worker.”

    “Labor and other key social forces are not about to leave the Democratic Party anytime soon,” Bachtell promised. “They still see Democrats as the most realistic electoral vehicle” to fight against perceived class enemies.

    Bachtell, 58, is playing the long political game and he has a strategy, he said.

    “First, we are part of building the broadest anti-ultra right alliance possible, uniting the widest array of class (including a section of monopoly), social and democratic forces. This necessarily means working with the Democratic Party,” the communist leader explained.

  2. BOB McGILL says:

    http://freedomoutpost.com/2013/01/obama-walks-us-towards-socialismcommunism/

    Jan 1, 2013 … What is this? How can we be “walking” towards Socialism/Communism? This cannot happen in the United States

    • whungerford says:

      With President Obama pushing for socialism for six years now, it is surprising that we haven’t made more progress. At this rate, we will have a new president before we have socialism.

  3. josephurban says:

    Why is it not considered “communist” for “big government” to “redistribute wealth” by giving massive tax breaks to business paid for by working taxpayers? Why can’t American businesses compete in a free market economy instead of always demanding government bailouts? Why is it communist to feed people, but “capitalist” to redistribute wealth from workers to corporations? America wants to know !

    • BOB McGILL says:

      BUT, BUT, BUT, corporations don’t pay taxes. When the government gives a corporation a break it is the corporations customers who REALLY get the break. My business is doing work for large corporations, when I bid on a job, all taxes, SS, health insurance costs, my retirement are all figured in. Then the corporation passes these costs on to the consumer, when the consumer buys the finished product. Nice try though 🙂 I will bet that you have a product, that when you bought it, you put money towards my tax bill. 🙂

      • josephurban says:

        BUT, BUT, BUT…why does the government need to interfere with the”free market” ? Why do the corporations you work for need the government to step in and lower their cost of doing business? Don’t you understand even the most fundamental aspect of a free market system? Let the marketplace decide. If your company cannot cut it and can’t keep costs down then the consumer will go elsewhere. It is called “competition”. Why do you demand corporate welfare, while liberals like myself want to see a true free market. One in which price reflect the actual cost of a product, without government subsidies. Sounds like I am the one who believes in free markets. And you demand that the government give you something for nothing. A 47%er ! 🙂

  4. whungerford says:

    Socialism is “common sense steps” to give people “more certainty and more control over their own financial situation.” One question for Tom at this week’s meetings might be: “what common sense steps have you taken to reduce poverty in NY-23?”

  5. Deb Meeker says:

    That’s at least two bills that Tom Reed applaudes that have no offsets, accumulating in total to around 79 billion. He’s no longer worried about the deficit? What about having to pay China first, or telling seniors who were interested in making their community a healthier place , yet were told by Reed: ” the budget is tight” “? Who’s budget”?

  6. Anne says:

    Two times you know Tom is trying to mislead: when he uses the phrase “common sense” and when he says “it’s only fair.” (Plus, you know, all those other times when his mouth is open and the words are coming out.)

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