Earlier this week, Senators Judd Gregg and Ron Wyden presented a bill in Congress that would reduce corporate income taxes. The legislators hope the tax reforms will inspire business formation and help America become more competitive in global markets.The proposed legislation would reduce the corporate income tax rate from 35 percent to 24 percent. Additionally, the first 35 percent of a business’ capital gains would be exempt from tax.
The new bill offers small business owners a special savings opportunity. A small company with receipts of up to $1 million can expense all of its inventory and equipment costs under the proposed tax bill.
Senator Gregg says he believes this tax reform will reward the individuals who are fueling economic recovery. “For far too long, our tax system has been overly complicated, burdensome and unfair to taxpayers and to small businesses that are the economic engines of our nation,” he is quoted saying.
With potentially better tax benefits, business-minded Americans may consider using this new bill as a motive for business incorporation. Entrepreneurs can increase their savings by using inexpensive incorporation services available online.