“Small businesses represent 99 percent of all employers, employ 51 percent of the private sector workforce, and generate the largest percentage of net new jobs each year. We must preserve this valuable sector of our economy,” Senator Snowe, Ranking Member of the Senate Small Business Committee, said. “Yet each year small businesses spend 8 billion hours and $1,304 per employee complying with the tax system. This is far too costly and time consuming for our nation’s largest job generators.”
To ease tax compliance for small businesses, Senators Snowe and Bond introduced S. 296, a bill enable small businesses with less than $10 million in gross receipts to employ the cash method of accounting. Currently, small businesses with less than $5 million in gross receipts may use then cash method while those over $5 million must employ their taxpayer reports to track the rise and fall of their businesses.
Senator Snowe also champions small business tax reform through her efforts to increase small business expensing. S. 269 will permanently expand small business expensing to $200,000. Under current law, after 2010, small businesses will be able to expense just $25,000
“The expensing provision encourages small businesses to invest in innovative technology and discover useful resources to remain competitive and viable in a global economy,” Senator Snowe said. “Making this provision permanent will be a boon to small businesses and a great step toward the re-emergence of American industry on the world stage.”
