House votes to make business tax break permanent - CBS46 News

House votes to make business tax break permanent

Posted: Updated:
  • NationalMore>>

  • Carjacked vehicle hits crowd, killing 2 children

    Carjacked vehicle hits crowd, killing 2 children

    Friday, July 25 2014 4:10 PM EDT2014-07-25 20:10:32 GMT
    Two men forced a woman into the backseat of her vehicle at gunpoint, drove off but later lost control and plowed into a group of people on a corner near a fruit stand in Philadelphia on Friday, police said. Two...More >
    Two men forced a woman into the backseat of her sport utility vehicle at gunpoint, drove off but later lost control and plowed into a group of people on a corner near a fruit stand in Philadelphia on Friday, police said....More >
  • Fukushima study: Think about unthinkable disasters

    Fukushima study: Think about unthinkable disasters

    Friday, July 25 2014 3:56 PM EDT2014-07-25 19:56:06 GMT
    A U.S. science advisory report says a key lesson from Japan's Fukushima nuclear accident is that the nation's nuclear industry needs to focus more on the highly unlikely but super-serious worst case scenarios.More >
    A U.S. science advisory report says Japan's Fukushima nuclear accident offers a key lesson to the nation's nuclear industry: Focus more on the highly unlikely but worst case scenarios.More >
  • Fired Ohio State band director vows to clear name

    Fired Ohio State band director vows to clear name

    Friday, July 25 2014 3:23 PM EDT2014-07-25 19:23:40 GMT
    The Ohio State marching band is moving forward without its director; a day after he was fired they're performing with the Columbus Symphony in what's often considered the band's unofficial season kickoff.More >
    The fired director of Ohio State University's celebrated marching band said through his attorney Friday that he has become a scapegoat for behavior occurring within the organization before his leadership and he'll...More >
By STEPHEN OHLEMACHER
Associated Press

WASHINGTON (AP) - The House voted Friday to make permanent a temporary tax break that makes it easier for businesses to invest in new equipment, one of many expired tax breaks that Congress must deal with by the end of the year.

The tax break allows businesses to more quickly write off the costs of new equipment, making it popular among business groups. But the White House has threatened a veto because the bill would add $287 billion to the budget deficit over the next decade.

The House approved the bill by a vote of 258-160.

The tax break, known as bonus depreciation, has been around for years, though it has always been temporary. The latest version was enacted in 2008 to help jumpstart the economy.

"It's easy, if you want to grow the economy, encourage job creation and increase federal revenue, you support making bonus depreciation permanent," said Rep. Pat Tiberi, R-Ohio, who sponsored the bill. "Permanency gives job creators the certainty they need to plan and invest in their businesses, including hiring employees."

The White House said the tax break was "was never intended to be a permanent corporate giveaway."

Typically, when a business buys equipment or property, it can deduct the cost over a period of years, depending on how long the equipment is projected to last. The tax break allows businesses to write off a larger share of the cost in the first year, immediately reducing tax bills.

The tax break expired at the beginning of the year, along with more than 50 other temporary tax breaks that Congress routinely extends.

The Republican-led House has voted to make a handful of the tax breaks permanent, leaving the fate of others uncertain.

The Democratic-controlled Senate is taking a different approach. Instead of making them permanent, senators have been working on a package that would extend nearly all the temporary tax breaks through 2015.

Democratic leaders say their approach would give lawmakers more time to decide which tax breaks to make permanent and which ones to get rid of.

The stalemate is unlikely to be resolved until after congressional elections in November. If Congress renews the temporary tax breaks by the end of the year, taxpayers would be able to claim them on their 2014 returns, which will be filed next spring.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow
CBS Atlanta
Powered by WorldNow
All content © 2000-2014 WorldNow and WGCL-TV. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.