Lapsed tax provisions leave small manufacturers in limbo
The Wall Street Journal (11/23, Rubin, Subscription Publication), in a story on Congress’ failure to renew certain tax breaks for small businesses, highlights repercussions for owners such as Dan Glier, president of Glier’s Meats in Covington, Kentucky and a NAM board member.
The lack of resolution over an expensing provision that expired last year is an acute problem for Glier, who isn’t sure if he’ll be able to cut capital costs for meat-processing equipment by up to $500,000 or as little as $25,000 in 2015, or what his tax liability will be next year. Only now, in late November, have discussions begun among Republican and Democratic leaders on Capitol Hill to discuss renewal of the so-called tax extenders for small business, the Journal says, noting that differences are over the focus and potential duration of the various provisions.
PPG Executive: Four Fixes For US Tax Reform. In an online commentary for CNBC (11/20), Frank Sklarsky, PPG Industries’ chief financial officer, said congressional leaders “have the opportunity for meaningful reform in a number of areas to create a tax system that aids and encourages U.S. competitiveness.”
Achieving this requires a focus on four areas, Sklarsky wrote: first, “eliminate loopholes by simplifying the tax code,” which would enhance fairness; second, “promote innovation among U.S. companies by making R&D tax credits permanent”; third, reduce the corporate tax rate to a maximum 25%, to make domestic companies more competitive and spur investment in the US; and finally, reform the country’s international tax system, which currently demands that US businesses “pay the same amount of tax on income that they earn abroad, when repatriated, as they would if they earned that income in the U.S.”