Washington (May 28, 2003) -- Treasury Secretary John Snow said that the way the new tax act reduces the tax on dividends and investment will have a "profoundly positive effect on job creation, corporate accountability, and the well being of all Americans."
Snow particularly noted the provisions for small business owners, which would accelerate the tax reductions that were enacted in the 2001 tax act.
Twenty-three million small business owners will receive tax cuts averaging $2,209, according to Treasury estimates. The increase in the expensing for new investment will encourage small business owners to purchase technology, machinery, and other equipment they need to expand. The amount of investment that may be immediately deducted by small businesses will quadruple from $25,000 to $100,000 beginning in 2003.
As a result of the expanded expensing provisions, according to the Treasury, tax compliance and record-keeping burdens will be simplified by allowing many small businesses to avoid the inherent complexity of depreciation provisions.
-- WebCPA staff
