Statement of Administration Policy: H.R. 4840 - Tax Simplification for America's Job Creators Act of 2004

STATEMENT OF ADMINISTRATION POLICY

(House)

(Rep. Crane (R) Illinois and 17 cosponsors)

The Administration strongly supports the central provision of H.R. 4840, which extends the Section 179 small business expensing provision to 2008 from its current expiration date of 2006, and intends to work with the Congress to make the higher $100,000 limit permanent. This higher expensing limit provision encourages America's small businesses to maintain high levels of investment in new machines, computers, and the other equipment they need to grow, hire more workers, and become more competitive. It also reduces the complexity of the tax code by allowing these businesses to write off immediately the cost of this equipment for tax purposes rather than facing the difficulties of complying with the regular depreciation system.

H.R. 4840 contains many other provisions that would simplify the Internal Revenue Code. The Administration looks forward to working with the Congress on enacting legislation that would strengthen the Nation's economy and increase jobs by strengthening the small business sector.