|
|
|
Small and Disadvantaged Business Stimulus Package In light of our nation's recent tragic events, Congressman Wynn advocates small business stimulus measures as part of an overall economic stimulus package that is planned to help revitalize the U.S. economy. Congressman Wynn's plan would include small business-specific tax relief and investment incentives to help foster the growth and success of small firms. In an effort to strengthen the economic fabric of our nation, the following measures for small businesses should be adopted as part of any larger "economic stimulus package" that are passed by the House of Representatives: 1) Increase the business meals deduction for small businesses. An increase in the business meals and entertainment deduction to 80% from the current 50% is greatly needed to assist the many self-employed individuals that rely on meals deductions as a way to promote their products and services to other individuals and businesses. Small business people find the deduction to be a critical, cost effective way to advertise, without the need to resort to expensive and inefficiently targeted media ads. Self-employed individuals, such as independent sales representatives, are constantly on the road promoting their products. These individuals are particularly discriminated against by a cut in the meal and entertainment deduction, since their business meal expenses are largely unavoidable due to their need to travel. 2) Increase expensing limits for business equipment. An increase in both the deductible for business equipment expensing to at least $50,000 and the phase-out limitation for equipment expensing from the current $200,000 to $400,000 is essential to the small business community. Lack of high-tech equipment and infrastructure remains a significant impediment to small business growth. Thus, these increases are needed to offset startup costs and to encourage growth and investment in new technology that will allow the self-employed and small businesses to compete with larger companies. 3) Adjusting business depreciation schedules for small businesses. As our society becomes more and more technologically advanced, software and computers quickly become outdated. Shortening depreciation schedules to two years from the current five years, will improve small business productivity and boost small business investment in technology. Small businesses have become the engine of the information technology (IT) economy. Between 1992 and 1996, small businesses produced more than 70% of the new IT jobs. The advent of the Internet has made it increasingly important for the self-employed and small businesses to utilize the World-Wide Web to market and sell their products and services. Small businesses that employ IT tools, such as Internet access, have grown 46% faster than those that have not. Thus, quicker depreciation schedules will encourage the self-employed and small businesses to invest in the technological tools they need to expand and stay competitive with larger businesses while also strengthening our nations’ economy. 4) Authorize the use of the government purchase card for all procurements awarded to small businesses valued at between $2,500 and $100,000. Currently, the government purchase card can only be used to buy and pay for micro-purchases of $2,500 or less. This will authorize agencies to use the purchase card for procurements between $2,500 and $100,000 where the procurements are set aside for small businesses. This will increase contracting opportunities for small businesses and reduce procurement lead time. 5) Exempt HUBZone and 8(a) firms from the ceiling on sole-source contracts. Currently, the ceilings are $3 million for service contracts and $5 million for manufacturing contracts. Contracts for property and services made with funds from the 2001 Emergency Supplemental Appropriations Act for Recovery From and Response to Terrorist Attacks on the United States should be exempt from the ceiling on sole-source contracts under the HUBZone and 8(a) programs. |
