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ASTA: Proposed Law Would Help Small BusinessFebruary 22, 2012 By: George Dooley Travel Agent
ASTA praised U.S. Rep. Hank Johnson (D-GA) for introducing H.R. 4032, the Help Entrepreneurs Create American Jobs Act of 2012, which would amend the Internal Revenue Service Code of 1986 and increase the tax cut for start-up businesses in their first year of operation. The legislation would permanently double the deduction a new business can take for start-up expenses from $5,000 to $10,000.
Said ASTA CEO Tony Gonchar: “With 98 percent of U.S. travel agencies qualifying as small businesses, ASTA supports measures that boost the economy and encourage the growth of small businesses. This bill will allow small businesses to stay competitive, while bringing an influx of cash and job opportunities to local economies. ASTA wishes to thank Congressman Johnson for his strong leadership in supporting small business and recognizing the important role they play in our economy.”
If passed, ASTA notes, H.R. 4032 would also permanently increase the threshold for the deduction’s phase-out from $50,000 to $60,000. For some companies, it would eliminate the tax complications of amortizing start-up expenses, as well, ASTA says.