[Congressional Record Volume 140, Number 102 (Friday, July 29, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 29, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
INTRODUCTION OF LEGISLATION ALLOWING BUSINESSES TO CLAIM NEW EQUIPMENT 
                   AND MACHINERY AS BUSINESS EXPENSE

  (Mr. SMITH of Michigan asked and was given permission to address the 
House for 1 minute and to revise and extend his remarks.)
  Mr. SMITH of Michigan. Madam Speaker, I think I have some good news. 
We just received a report from the Tax Action Analysis. It is the tax 
policy arm of the Institute for Policy Innovation.
  According to this study, it would result in almost 3 million new 
jobs. So in addition to new jobs, it results in added real GDP growth 
from my bill that I introduced, H.R. 539. It results in increased take-
home pay.
  Let me just give you a summary of the analysis of this bill that 
allows business to claim on their tax forms that the new equipment and 
machinery that they buy can be considered a business expense. First, 
higher investment would increase capital formation in the United States 
by $8.9 trillion. Second, this larger stock of U.S. capital would lead 
to the creation of 2.7 million new jobs. Third, more capital and labor 
would yield an extra $3.5 trillion in gross domestic product between 
1995 and the year 2000.
  Finally, this greater economic activity would boost long-term annual 
growth.
  Madam Speaker, I elicit my colleagues to cosponsor this bill.

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