Small business owners are hopeful that House Ways and Means Chairman Paul Ryan’s proposed tax reforms will come to fruition in the near future. Ryan is pushing for certain tax provisions, like the Code Sec. 179 deduction, which makes purchasing business equipment more economical, to be made into permanent tax extenders. These extenders should help to alleviate enough financial tension for small business owners to be able to undauntedly increase their staff and broaden their enterprises. Furthermore, Ryan is in talks with the Senate to push certain extenders which the House has already approved, moving one step closer to passing a package of small business tax breaks.
The primary bar in the way of these tax extenders is President Obama’s lack of interest in small businesses, and his express interest in supporting larger corporations. If Ryan and his supporters are unable to come to an agreement with the Obama administration regarding the limited tax reform which Ryan is proposing, they plan to at least complete a package of extenders by late summer or early fall. Until then, Ryan and his team are likely to make a push for these extenders to be put into place individually. Whatever the case, the situation certainly appears to be on the uprise for small businesses.
By Paul Holcomb, Director of Marketing and PR at National Tax Credit