[Congressional Record Volume 154, Number 9 (Tuesday, January 22, 2008)]
[Extensions of Remarks]
[Pages E53-E54]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF LEGISLATION EXPANDING SECTION 179 SMALL BUSINESS 
                               EXPENSING

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                       Tuesday, January 22, 2008

  Mr. HERGER. Madam Speaker, in Congress's rush to enact some manner of 
short-term economic stimulus, we should not lose sight of the bigger 
picture, that is, that the long-run prosperity of the American worker 
and his or her family depends on sustained and not one-time economic 
growth. In general, while economic growth is dependent on many

[[Page E54]]

factors, one of its chief determinants is certainty and predictability. 
It is for this reason that I believe we must act now to extend the 
critical tax relief of the last 6 years. Industry is already making 
operational decisions today based on the business environment of 
tomorrow, and it is troubling to think that, absent any signals from 
Washington to the contrary, they are expecting tax increases. It is 
also time to focus our attention on other elements of our long-term 
economic prosperity, and that includes America's competitive position 
relative to our largest global competitors. I am concerned that we have 
some of the highest business taxes among the top economies in the 
world. This is something that we must work to change if we hope to 
compete in the 21st century.
  One of our country's most valuable assets is our workforce, and 
fostering the continued competitiveness of this asset is a growing 
challenge. This is one of the reasons I support small business 
expensing, both as a short-term and long-term tax policy. Workers grow 
and learn on the job, underscoring the critical importance of 
businesses keeping their doors open and expanding. Nearly two-thirds of 
all new job creation in the U.S. comes from small businesses. In the 
context of an economic stimulus, increasing small business expensing 
limits would help keep workers employed and even create new jobs as our 
country weathers an uncertain economic time.
  How does small business expensing help? Second, when facing slower 
economic growth, and the potential for job loss, expensing frees up 
potentially affected businesses from spending so much of their cash 
flow on overhead, therefore enabling them to retain existing workers, 
hire new workers, and focus on expansion rather than just staying 
afloat. Expensing makes this possible by allowing companies to write-
off 100 percent of new, otherwise depreciable assets immediately.
  While my legislation would grant a short-term increase in the current 
law expensing limits, expensing makes for good long-term investment-
focused tax policy as well. I look forward to working with others in 
the House and Senate to approve this measure, and continue the debate 
over long-term tax policies that really get at the bedrock of America's 
economic growth.

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