|May 6, 2003|
- The House Ways and Means Committee has approved a Jobs and Growth package that includes a provision mirroring legislation originally authored by Congresswoman Kay Granger (R-Fort Worth) earlier this year. Granger’s proposal, to allow small businesses to expense more of their investments, would grow the economy and generate more jobs by creating incentives for small companies to expand.
"The President has made a powerful and persuasive case that tax relief creates new jobs," said Representative Granger. "The House is moving this week to pass his bold plan and I am very pleased that it encourages small businesses to hire more workers and invest in the technology and equipment they need to expand."
Noting the leading role small firms play in economic recoveries, Granger introduced H.R. 1126, the Small Business Tax Fairness Act in March. Like the Jobs and Growth Bill, it would reward investment and expansion by increasing the amount that a business can write off for new equipment purchases from $25,000 to $100,000.
To ensure that small firms are the prime beneficiaries of the expensing increase, the amount of investment qualifying for this deduction would begin to phase out for businesses with investment in excess of $400,000.
In addition to Granger’s small business provision, the Jobs and Growth Bill would provide stimulative tax relief on dividends and capital gains, move income tax rate reductions planned for 2006 up to this year, eliminate the marriage tax penalty, and increase the child tax credit.
The full House is slated to consider the bill on Friday.