Business expense bill would create 200K jobs, NFIB says

The National Federation of Independent Business (NFIB) said Monday that 200,000 jobs would be created and economic output would increase by as much as $18.6 billion if Congress were to permanently increase the amount of capital investments businesses can immediately deduct from their taxable income.

The House Rules Committee is expected on Tuesday to discuss the America’s Small Business Tax Relief Act of 2015, which would increase the annual amount of property — like new equipment and capital upgrades — that can be expensed from $25,000 to $500,000. 

“That would encourage more businesses to make bigger investments, which would generate a lot more economic activity,” said NFIB’s President and CEO Dan Danner.  

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“Businesses that know they can recoup the cost of big-ticket investments, like new machinery or vehicles or farming equipment, are a lot likelier to make the commitment.  It’s good for the purchaser, of course, but it’s also good for the firms that manufacture and market the products because they’ve got more buyers.  

Danner said small businesses often have to wait until the last minute to make big investment decisions. 

“It’s a very inefficient system that freezes big decisions until the end of the year and very likely discourages a lot of economic activity that would be otherwise very good for local communities and the broader economy,” he said.

The House could vote on the bill as early as Friday.