Tax uncertainty weighs on small business
In case any further indications are needed, the recent article “Mere threat of tax cliff already weighing heavily on small businesses” provides anecdotes of how expiring tax provisions affect businesses. I see small businesses that are paralyzed by uncertainty. The election-year stalemate has real consequences.
For example, [a] tax planning services [firm] emphasized the “on-again, off-again” nature of two important tax extenders — referred to as Section 179 deduction and bonus depreciation — which currently allow businesses to write off portions of their investments in software and equipment. Should Congress take no new action, Section 179 will be diminished and the bonus depreciation option will disappear altogether in 2013.