WASHINGTON — U.S. Rep. Vern Buchanan, R-FL, today announced the introduction of bipartisan legislation that would make it easier and less costly for an entrepreneur to start a new business.
Buchanan’s “Support our Start-Ups Act” (H.R. 2524) would quadruple the amount of start-up costs small business owners can deduct from their federal income taxes, raising it from $5,000 to $20,000.
The Florida Chamber of Commerce and the National Federation of Independent Business (NFIB) immediately endorsed Buchanan’s proposal.
“At a time when millions of Americans are unable to find good-paying jobs, government should be doing all it can to encourage entrepreneurs to create jobs,” said Buchanan, a senior member of the tax-writing House Ways and Means Committee. “This bipartisan, common-sense bill will make it easier and less costly for hard-working Americans to realize their dream of starting a business.”
Buchanan noted that historically small businesses have created the majority of American jobs and pointed to a recent Washington Post story which found that for the first time in 30 years, business “deaths” now outnumber business “births.” The “Support Our Start-Ups Act” can help reverse this trend by making it significantly less costly to start a new business.
“During a time of slow economic recovery, this legislation provides a significant incentive for entrepreneurs to start their own business,” said Amanda Austin, Vice President of Public Policy for NFIB. “By increasing and simplifying the start-up cost deduction, small business owners will be able to put money back into their business sooner, creating greater opportunities for job creation and investment in local economies.”
David A. Hart, Executive Vice President of the Florida Chamber of Commerce, noted that “in Florida alone, there are more than two million small businesses, which create two out of three jobs in Florida . . . The Support Our Start-Ups Act removes some of the initial barriers to creating a business, putting money back in the pocket of our state’s best job creators- setting start-ups on a path toward success.”
Buchanan, a self-made businessman himself, said that he knows firsthand how costly starting a new business can be. Before even opening their doors, entrepreneurs may pay for legal and consulting fees, marketing research, recruiting expenses, and office supplies. A longstanding principle of tax law prohibits deducting these costs until the business commences – and the maximum deduction is limited to $5,000.
Buchanan has long been a widely respected leader in Florida’s business community. During his 40 year career in business, he chaired both the Florida Chamber of Commerce and the Sarasota Chamber of Commerce. He was also a member of the Board of the U.S. Chamber, and in 2005 he was inducted into the Tampa Bay Business Hall of Fame.
Buchanan also serves as Co-Chairman of Florida’s 29-member Congressional Delegation along with Rep. Alcee Hastings (D-FL).
The Support our Start-Ups Act currently has 16 bipartisan co-sponsors including Rep. Alcee Hastings (D-FL), Rep. Patrick Murphy (D-FL), Rep. Mario Diaz-Balart (R-FL), Rep. Charles Rangel (D-NY), Rep. Linda T. Sanchez (D-CA), Rep. Earl Blumenauer (D-OR), Rep. Robert Dold (R-IL), Rep. Mike Kelly (R-PA), Rep. Ron Kind (D-WI), Rep. Richard Neal (D-MA), Rep. Bill Pascrell (D-NJ), Rep. Tom Reed (R-NY), Rep. Jim Renacci (R-OH), Rep. Mike Thompson (D-CA), Rep. Patrick Tiberi (R-OH) and Rep. Todd Young (R-IN).
