Today, Congressman Scott Murphy (NY-20) released the following statement regarding the proposed legislation to allow businesses to write off 100 percent of their new investments in plants and equipment:
"This is exactly what we need to do for our economy right now. By helping businesses invest in new equipment, we help create new jobs. The proposal would allow businesses to write off 100 percent of their new investments in plants and equipment, cutting taxes on businesses across the United States and Upstate New York. This is a perfect example of where getting government out of the way will encourage businesses to make the critical investments needed to jump start the economy. I strongly encourage the House leadership to quickly bring this proposal to the floor for a vote."
Scott has used his experience as a businessman to push for this sort of program to help businesses.
The Obama administration proposal would enable companies to write off 100% of their new investments in plant and equipment through 2011, and cut business taxes by nearly $200 billion over two years. This legislation will be paid for by reportedly closing corporate tax loopholes.
This legislation would cost $30 billion, but it would be recouped over the next decade because businesses would not be able to deduct the cost of investments over time, as is done now. It is estimated that about 1.5 million companies would take advantage of the proposal. According to information from the conservative American Enterprise Institute, it would also expand business equipment investment by 5% to 10%.