Rep Chris Lee says he wants to help small businesses. His latest effort, announced in a press release today, is a tax break for start-up costs. He co-sponsored the legislation with a Democratic congressman from Maryland.
Apparently, a small business can currently only write up $5,000 of its start up costs for tax purposes. Lee's proposal would bump the limit to $20,000.
That sounds good as far as it goes, but at a time when credit is tight for small business start-ups, is it really going to provide the needed stimulus for entrepreneurs? Just asking.
Click on "read more" to view the full press release.
Press Release:
H.R. 1552 endorsed by nation’s leading small business association: “Congressman Lee’s plan to jumpstart the small business sector of our economy is the right approach to getting our economy back on track.”
WASHINGTON – Congressmen Chris Lee (R-NY) and Frank Kratovil (D-MD) held a joint press conference call today to discuss bipartisan legislation they have introduced that would boost small business start-ups by expanding a critical tax incentive. This is one of two bipartisan initiatives Congressman Lee has proposed this month to jumpstart job creation and aid Western New York’s economic recovery.
Congressman Kratovil added: “The men and women who own and operate small businesses are the driving force behind job creation; employing half the nation’s private work force. These entrepreneurs need encouragement and motivation to create jobs and spur innovation in these challenging times; giving them a start-up expense tax break will do exactly that. “
H.R. 1552 has been endorsed by the National Federation of Independent Business (NFIB), the nation’s leading small business association representing small and independent businesses.
Mike Elmendorf, state director of NFIB/New York, said in a statement, “Congressman Lee’s plan to jumpstart the small business sector of our economy is the right approach to getting our economy back on track. His proposal to quadruple the start-up deduction will give thousands of small businesses the incentive they need to invest in growing their business and creating jobs.”
Last week, Congressman Lee joined with Congressman John Boccieri (D-OH) to introduce bipartisan legislation (H.R. 1545) to make the research and development (R&D) tax credit permanent. Unlike other proposals to make the R&D tax credit permanent, H.R. 1545 would also offer a bonus tax credit to companies who manufacture most of their products in the United States.
