Letter to Harry Reid, Senate Majority Leader, and Mitch McConnell, Senate Minority Leader - Small Business Tax Certainty and Growth Act

Letter

Dear Majority Leader Reid and Minority Leader McConnell:

With the national unemployment rate still unacceptably high and American families finding it harder and harder to get ahead, it is time for both parties to come together on legislation to promote economic growth and job creation. While we may sometimes disagree on the best course for accomplishing this goal, there are many areas where both sides do agree. We urge you to focus on the areas where we can find consensus and bring to the floor bipartisan legislation aimed at promoting a thriving economy and the good, high-paying jobs that Americans want and deserve.

Among the areas in which we believe Republicans, Democrats, and Independents all agree is the importance of small businesses -- our nation's job creators -- to our economic future. Together we have partnered to develop the bipartisan Small Business Tax Certainty and Growth Act (S. 1085), which would make it easier for small businesses to plan for capital investments that are vital to expansion and job creation. Our bill also makes it less costly to start a new business by doubling the deduction for start-up expenses and reduces the administrative burden on small business owners by allowing more companies to use the less-complex cash method of accounting.

Unfortunately, important provisions of the tax code that small businesses need to grow and add jobs were allowed to expire at the end of last year. Our bill would renew two provisions critical to small business investment and job growth -- 50 percent bonus depreciation and 15-year straight-line depreciation for certain property improvements -- and would permanently increase a third (Section 179 expensing). These policies are proven to help employers expand their operations and create good jobs. For example, a recent study by the Department of the Treasury's Office of Tax Analysis concluded that bonus depreciation helped to increase business investment by as much as 31.2 percent between 2008 and 2010.

Washington must do all it can to help get America working again. We urge you to bring to the Senate floor as soon as possible bipartisan legislation, such as our Small Business Tax Certainty and Growth Act, to reenergize our economy by giving small businesses the tools they need to invest, expand, and create good-paying jobs.

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