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Kuhl Introduces Legislation to Simplify Tax Code for Small Businesses and Farmers

Press Release

Date: June 10, 2008
Location: Washington, DC
Issues: Taxes


Kuhl Introduces Legislation to Simplify Tax Code for Small Businesses and Farmers

U.S. Representative John R. "Randy" Kuhl, Jr. (R-Hammondsport) today sponsored legislation to simplify the tax code to provide the opportunity for small business owners and farmers with home offices to receive a tax deduction.

"There are nearly 27 million small businesses in the United States but according to the Internal Revenue Service Office of the Taxpayer Advocate only 2.7 million filed the necessary paperwork in tax year 2003 to take advantage of the deduction for home office expenses," said Rep. Kuhl. "By simplifying the tax code I am hopeful that more hard working entrepreneurs will file for their deserved deduction."

The Home Office Deduction Simplification Act of 2008, H.R. 6214, will simplify the tax code and provide Americans with the option to take a standard deduction of $1,500, indexed to inflation, for home office expenses.

The tax code currently provides a deduction for home offices for self-employed taxpayers and employees who must use their residents for business purposes at their employer's request. According to the IRS Office of the Taxpayer Advocate, many taxpayers currently do not take the deduction because it is too complex and complicated to complete. This legislation is designed to make life easier for small businesses and farmers by providing a simpler way to take a tax deduction.

Across the nation, small businesses have generated 60 to 80 percent of the annual increase in new jobs over the last decade. They provide 51% of our nation's private sector employment, 45% of its payroll and produce approximately 50% of the nation's private, nonfarm GDP.

"Due to overwhelming state taxes, New York State is continually ranked poorly for starting and maintaining a small business. This bill will put more money back in the hands of small businesses and farmers so they can operate their businesses effectively," said Rep. Kuhl.


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