Larsen Applauds Passage of Small Business Tax Cuts
U.S. Representative Rick Larsen (WA-02) voted today in favor of the Small Business Tax Relief Act of 2007 (H.R. 976) which includes $1.3 billion in tax cuts to help small businesses grow and hire new workers. The U.S. House of Representatives passed the legislation by a vote of 360 to 45.
"Small businesses are the heart and soul of Northwest Washington's economy," said Larsen. "This legislation will provide welcome tax relief, help small businesses grow and create family wage jobs."
The Small Business Tax Relief Act of 2007 extends small business expensing under Section 179 for one year - increasing both the amount small businesses can deduct from their taxes (from $112,000 to $125,000) and the number of small businesses that can take these deductions (by increasing the income limits for businesses taking the deduction from $450,000 to $500,000). This legislation is fiscally responsible and fully paid for in accordance with the House's new pay-go rule.
Today's passage of the Small Business Tax Relief Act by the House is a key step in getting an increase in the federal minimum wage passed into law. In January, the House passed legislation to raise the federal minimum wage incrementally from the current level of $5.15 an hour to $7.25 an hour over the next two years. The Senate also passed a minimum wage increase, but amended the House-passed bill to include a package of tax cuts. The Small Business Tax Relief Act of 2007 will help reconcile the House and Senate-passed measures.
"With the highest minimum wage in the country, Washington state is ahead of the curve," said Larsen. "Closing the gap between the federal minimum wage and Washington state's minimum wage will make our businesses more competitive and keep Washington businesses in Washington.
"It's plain wrong that hard-working Americans earning the minimum wage are forced to live in poverty," Larsen continued. "We need to end this injustice and bring hope to millions of American workers and their families."