Let Them Eat Cake
When it comes to small business, a new tax-cut bill is half-baked.
With the 2004 congressional session drawing to an end, small-business advocates were trying to get at least a thin layer of icing applied to the big-business tax cut cake coming out of the Capitol Hill oven. The rich confection, baked by both Republicans and Democrats, was the bill instituting numerous new tax incentives for U.S. manufacturers, who would no longer have access to the Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) tax regimes declared illegal by the World Trade Organization.
Supporters of small businesses who are on the Senate-House conference committee attempted to add a uniquely small-business amendment to the FSC/ETI bill, which was almost sure to pass Congress and be signed by President Bush. That amendment would enhance the Section 179 expensing provision included in the Jobs & Growth Tax Relief Reconciliation Act of 2003. The bill increased the amount of equipment small businesses may expense from $25,000 annually to $100,000, but only through the end of 2005.
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