JOHNSON CITY, TENN.
U.S. Sen. Lamar Alexander (R. Tenn.) told business leaders here today that the bipartisan economic growth packaged signed by President Bush last week could boost as many as 2,800 Washington County businesses — most of them small businesses.
Alexander said the new law will temporarily
• Allows businesses to deduct 50 percent of the costs of purchases of new equipment
• Increases small business expensing limits to $250,000 — up from $128,000, and increasing the phase-out to $800,000 from $510,000.
"These temporary changes in the tax code should allow small business to earn more and create more jobs which, in turn, will provide a much needed shot in the arm to the economy, "Alexander said.
Alexander said he will introduce legislation to make the tax code changes permanent "as a way of keeping a strong, vibrant economy producing good, new jobs."
The new law also provides tax rebates to 2.7 million Tennesseans, which create additional spending that will stimulate our economy, he said.
Alexander spoke at a reception sponsored by the Johnson City Chamber of Commerce at the ETSU and General Shale Brick Natural History Museum in Gray.