NFIB comes out fighting every time
lawmakers and regulators try to take another bite
out of your business or your pocketbook. Our
victories translate into money in your pocket.
Death Tax Exemption
Credited by both the Wall Street Journal
and the New York Times for putting death taxes on
the congressional radar, NFIB helped raise the
exemption for family-owned businesses and farms to
$1.3 million. For individuals, the exemption will
increase to $1 million by 2006 when it is fully
phased in. In 2000, Congress passed a bipartisan
bill to completely eliminate death taxes.
President Clinton vetoed the bill.
Home
Office Deduction Restored
NFIB pushed
Congress to restore the exemption that was limited
by the Supreme Court. Because of NFIB's efforts,
home offices may be deducted if they serve as the
site of essential business administration.
Capital Gains Taxes Cut
NFIB supported a cut in the top capital
gains rate from 28 to 20 percent for assets held
18 months, including small businesses. Assets held
over five years are taxed at 18 percent.
Capital Expensing Increased
NFIB worked with Congress to increase the
amount of equipment a small business owner can
expense. Expensing limits will increase to $20,000
in the tax year 2000, to $24,000 in tax year 2001
and $25,000 in 2003 and thereafter. President
Clinton's veto stopped Congress from increasing
expensing to $30,000 in 1999.
Tax
Ruling: ISO 9000 Expensing
Multinational corporations are not the
only businesses that contribute to the global
economy. Small business plays a role. But there
are obstacles to free global trade. One of these
has been the ISO 9000 compliance requirement for
manufacturers to export. Meeting certification
requirements is expensive, mainly because of the
labor costs, which are expended immediately.
Historically, the IRS has held that a business
could not expense these costs in one year but
should capitalize the costs over several years.
NFIB took the lead, working with trade groups, to
get a Revenue Ruling from the IRS that permits
costs to be expensed during the current tax year.
Taxpayer Bill Of Rights Approved
NFIB was a strong supporter of the
Taxpayer Bill of Rights, which puts the burden of
proof on the IRS when taxpayers seek reimbursement
for legal fees incurred from unjustified
enforcement action.
NFIB Holds Family
Leave In Check
NFIB helped hold back a
plan proposed by President Clinton to expand the
Family and Medical Leave Act (FMLA) by executive
order. At present, the FMLA applies to businesses
with 50 or more employees, requiring them to grant
unpaid leave for family illness, births or
adoption. The president proposed using
unemployment benefits to pay employees from any
size company for taking family leave at the birth
or adoption of a child in states that choose to
participate in the program. NFIB worked to ensure
that no state passed the expansion of family leave
to include paid leave.
EPA's
Unwarranted Paperwork Stopped
The
Environmental Protection Agency (EPA) requires
companies that handle or store hazardous
substances to file Risk Management Plans. This
would have resulted in a $1 billion regulatory
burden on small propane retailers -- with no
corresponding environmental or safety benefits. In
1999, NFIB helped win enactment of the Chemical
Safety Information, Site Security and Fuels
Regulatory Relief Act (S. 880), convincing
lawmakers that more paperwork does not necessarily
mean a cleaner environment.
Superfund
Liability Relief
In 1999, NFIB
successfully pushed liability relief that saved
thousands of small scrap recycling businesses from
closing their doors. Legislation signed in as part
of the omnibus-spending bill ensures that the
Superfund liability law will no longer penalize
recycling and recyclable material. |
