[Congressional Record Volume 141, Number 31 (Thursday, February 16, 1995)]
[Extensions of Remarks]
[Page E367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                 SMALL BUSINESS ASSISTANCE ACT OF 1995

                                 ______


                         HON. NANCY L. JOHNSON

                             of connecticut

                    in the house of representatives

                      Wednesday, February 15, 1995
  Mrs. JOHNSON of Connecticut. Mr. Speaker, I am pleased to introduce 
today legislation to give small businesses greater incentive through 
the Internal Revenue Code to purchase equipment and machinery.
  Under current law, section 179 of the Tax Code allows a deduction of 
up to $17,500 for certain depreciable assets used in a trade of 
business. In view of the enormous costs encountered by businesses in 
these competitive times, this deduction is far too low.
  I have pressed for increases in section 179 expensing for the last 
several years and believe that, as the cost of productivity-improving 
devices like machine tools and sophisticated testing equipment grows, 
the ability to deduct those costs should be enhanced.
  My bill is very straightforward in increasing section 179 
deductibility to $50,000. Though it probably should be much higher to 
reflect its job-creating possibilities, its impact on tax revenues is 
not insignificant and must be dealt with in the Ways and Means 
Committee. I look forward to prompt action in the committee and trust 
that my colleagues will consider this measure during the upcoming 
debate.


                          ____________________