S.1688 - Growing America’s Small Businesses and Manufacturing Act (119th Congress)
Summary
S.1688, the "Growing America's Small Businesses and Manufacturing Act," aims to amend the Internal Revenue Code of 1986. The bill focuses on permanently extending depreciation allowances for business interest deduction limitations and increasing limitations on expensing depreciable business assets. It seeks to provide tax relief and incentives for small businesses and manufacturers.
Expected Effects
The bill's passage would result in businesses being able to deduct a larger amount of expenses related to depreciation and business interest. This would reduce their tax burden. It would also increase the amount small businesses can expense for depreciable assets, incentivizing investment.
Potential Benefits
- Increased tax deductions for businesses, freeing up capital for investment and growth.
- Simplification of tax calculations by making depreciation allowances permanent.
- Enhanced investment in depreciable assets due to increased expensing limitations.
- Potential for job creation as businesses expand operations with tax savings.
- Support for small businesses and manufacturers, key drivers of economic activity.
Most Benefited Areas:
Potential Disadvantages
- Potential increase in the national debt due to reduced tax revenue.
- Complexity in the tax code, despite simplification efforts in some areas.
- Benefits may disproportionately favor larger small businesses with higher capital investments.
- Risk of inflation if increased business spending is not matched by increased productivity.
- Possible need for future tax adjustments to offset revenue losses.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. By adjusting tax deductions and expense limitations, the bill aims to stimulate economic activity, which falls under the purview of Congress's enumerated powers. However, the potential increase in national debt could raise concerns about fiscal responsibility and the long-term economic stability, which indirectly relates to the "general welfare" clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).