For Immediate Release
February 28, 2003

Jobs & Economic Growth Fact of the Day

$75,000

Under the President's economic growth plan, the amount of investment that may be immediately deducted by small businesses would be increased from $25,000 to $75,000 beginning in 2003.

Today's Action

• Secretary of Labor Elaine Chao met with the National Women's Business Council and the National Association of State Workforce Agencies in Washington, DC today to discuss how the President's jobs and growth plan will benefit America's small businesses.

• The President's plan proposes tripling the amount small businesses can expense for new investment. This increase will give small business owners greater confidence to make the purchases of technology, machinery, and other equipment that they need to grow.

• The amount of investment qualifying for this immediate deduction would begin to phase out for small businesses with investment in excess of $325,000 (increased from $200,000) - giving more of the Nation's small business owners the opportunity to invest and expand.

• Creating an environment in which small businesses thrive is essential to a strong economy. The President's jobs and growth plan calls for the acceleration of tax reductions enacted in the 2001 tax relief law that would benefit America's small businesses. In fact, small business owners would receive 79% (about $10.4 billion) of the $13.3 billion in tax relief from accelerating the reduction in the top tax bracket to 35%.

• The President will also continue to seek a permanent end to the death tax so small business owners can pass on their life's work to the next generation.

• The President has urged Congress to move quickly and act on his economic proposals to encourage our Nation's entrepreneurs, speed up economic growth and generate new jobs for American workers.