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.