After spending the month of August meeting with hundreds of constituents Congressman Kurt Schrader (D-OR) has introduced 3 bills aimed at helping Oregon small businesses and families weather this difficult economy. The three bills increase the estate tax exemption, simplify the home office tax deduction and extend the first-time home buyer tax credit.
After spending the month of August meeting with hundreds of constituents Congressman Kurt Schrader (D-OR) has introduced 3 bills aimed at helping Oregon small businesses and families weather this difficult economy. The three bills increase the estate tax exemption, simplify the home office tax deduction and extend the first-time home buyer tax credit.
“After holding numerous constituent meetings during August I’ve heard loud and clear that Congress needs to keep looking for ways to rebuild our economy,” said Schrader. “These three bills will put more money into the hands of Oregonians and help create badly needed jobs in our state and the nation.”
The first bill would extend the $8,000 first-time home buyer tax credit through September 2010. This program has been an unqualified success for prospective homeowners, homebuilders and our national economy. According to the New York Times the home-buyers credit will be responsible for nearly 400,000 purchases of new and existing homes by the end of the year.
“This is one project where we can see tangible benefits for Oregon families and the larger economy,” said Schrader. “By extending the tax credit we can help more families realize the American dream of owning their own home and continue to stabilize the housing market, which is a key component of economic recovery.”
The estate tax currently exempts estates valued at more than $3.5 million (or $7 million per married couple). Estates that exceed that level are taxed at a rate of 45 percent. This law is scheduled to be repealed in 2010 and it would then return full-strength, with a 55% rate and $1 million exemption level, in 2011. Schrader’s legislation, the Small Business and Family Farm Estate Tax and Relief Act of 2009, will raise the exemption to $5 million for individuals and up to $10 million in the case of married couples and set the taxation level to 45% for estates exceeding those levels. His plan would be permanent.
Schrader believes making the increased exemptions permanent will allow farmers and small business owners to plan for the continuity of their farms and businesses and decrease the uncertainty that occurs when Congress changes the exemptions every couple of years.
“As I talk with constituents I hear many stories of small companies and family farms being forced to break-up the family business when a loved one dies,” said Schrader. “This costs our economy jobs and stifles the entrepreneurship that employs 57% of working Oregonians and is central to the recovery of our economy.”
The third bill, the Home Office Tax Deduction and Simplification Act (H.R. 3615), was introduced in late September with Republican Congressman Devin Nunes of California. H.R. 3615 will reduce the complexity of the tax code by allowing businesses to take a standard deduction of $1,500 for home office expenses without utilizing the current, more complex formula. H.R. 3615 simply makes it easier for small businesses owners to claim the deduction.
“Small businesses are the job creators in our economy,” said Schrader. “This bill streamlines the tax process that often puts an undue burden on entrepreneurship allowing small businesses to put these savings back into the economy. That means hiring more workers, expanding their businesses, and helping rebuild our economy. I’m pleased to join with my colleague Representative Nunes to work for a bi-partisan proposal to help American small businesses and our economy.”
H.R. 3615 was introduced on September 23rd by Schrader and Nunes as well as Representatives Ron Kind (D-WI), Vern Buchanan (R-FL) and 18 other Democrats and Republicans. A companion bill was introduced last week in the Senate by Senators Barbara Boxer (CA), Jeff Merkley (OR), Evan Bayh (IN) and Joe Lieberman (CT).
