House OKs permanent business tax cuts
By Emma Ginader, The Columbus Dispatch
WASHINGTON — The U.S. House approved a bill yesterday sponsored by Rep. Pat Tiberi that makes permanent a series of business tax cuts, with Tiberi saying the measure would “give this country a raise.”WASHINGTON — The U.S. House approved a bill yesterday sponsored by Rep. Pat Tiberi that makes permanent a series of business tax cuts, with Tiberi saying the measure would “give this country a raise.”
By a vote of 258-160, the bill was sent to the Senate, which wants to extend the tax cut for just two years. The measure would allow businesses to continue to deduct 50 percent of the cost of new equipment with a value greater than $5,000.
By making the cut permanent, Tiberi, R-Genoa Township, said he would hope that businesses would continue to have money to invest in their businesses, boost wages, hire workers and create facilities.
“Making it permanent allows employers to effectively plan for their future needs and incentivizes them to grow and create jobs,” Tiberi said.
Although 34 Democrats joined 224 Republicans to pass the bill, Rep. Danny Davis, D-Ill., denounced it as another “corporate giveaway” that ignores key programs to create jobs, build roads and bridges, and support unemployment insurance.
Davis said he cannot support a bill “when I can’t go to church on Sunday or walk down the street without somebody asking me, ‘When is Congress going to do something about our employment checks?'
“When are we going to provide confidence and hope?” Davis asked. “When are we going to stop the process where the rich continue to get rich and the poor continue to get poor and the middle class gets squeezed into where we almost create two groups and two categories of people: those who have much, those who have little?”
The Joint Committee on Taxation calculates that if the bill became law, it would add $287 billion to the federal deficit in the next decade. Without congressional action, the tax cuts expire at the end of the year.
However, Tiberi said that Ohio businesses told him the measure would encourage hiring, saying, “ I have people who (would) rather have jobs than unemployment insurance.”
Among area lawmakers, Republicans Steve Stivers of Upper Arlington, Bill Johnson of Marietta, Jim Jordan of Urbana and Bob Gibbs of Lakeville voted for the bill, while Democrat Joyce Beatty of Jefferson Township opposed it.