Mr. President, I ask unanimous consent that the Senator from Pennsylvania and I be permitted to engage in a colloquy as in morning business. Mr. President, the ongoing debate on unemployment compensation shines a spotlight on the…
Mr. President, I ask unanimous consent that the Senator from Pennsylvania and I be permitted to engage in a colloquy as in morning business.
Mr. President, the ongoing debate on unemployment compensation shines a spotlight on the underlying problem; that is, extremely sluggish job growth in our still-lagging economy. Putting people to work is my number one goal.
As American families continue to struggle to get the jobs they need at the wages they deserve, it is more important than ever for Members on both sides of the aisle to come together on legislation to promote economic growth and job creation. Today, I am pleased to join my good friend and colleague Mr. Casey to discuss our legislation to do exactly that: the Small Business Tax Certainty and Growth Act, which we introduced last year. Our bipartisan legislation focuses on areas of consensus that both parties can embrace to rekindle opportunity by helping small employers start up or grow and create or add good-paying jobs.
It is often said that small businesses are our Nation's job creators, and the data bear that out. According to the Bureau of Labor Statistics, small businesses generated 65 percent of the net new jobs that were created between 1993 and 2009. Together, America's small businesses employ nearly half of our Nation's workers and generate half of our Nation's GDP.
Even the smallest employers have a huge impact on our economy; 18 percent of all private-sector employees work for businesses with fewer than 20 workers.
Senator Casey and I recognize that employers cannot grow and add jobs unless they have the money to invest in building and expanding their businesses. That is why our bill focuses on making it easier for them to plan their capital investments and aims to reduce the burden and uncertainty of taxation, all in the name of creating jobs.
Let me explain a few of the provisions of our bill.
First, let me start by stating the obvious: Starting a new business that can hire workers costs money. Our bill eases the tax burden on new employers by permanently doubling the deduction for start-up expenses from $5,000 to $10,000.
There are two other provisions in our bill that affect employers both large and small that we propose to extend: first, the so-called bonus depreciation, and second, the 15-year depreciation for improvements to restaurants and retail facilities. Unfortunately, these important provisions were allowed to expire at the end of last year, causing great uncertainty and thus discouraging investment and the creation of jobs.
Just think about this: The law has reverted to a provision that says that a restaurant has to depreciate its renovations over 39 years. Can you imagine a restaurant waiting to renovate only once every 39 years because it is going to take that long to write off, to depreciate the cost? The 15-year depreciation schedule for improvements is far more realistic.
Our bill also provides certainty for small employers who use section 179 of the tax code. That is the small business expensing provision. Recent studies by the National Federation of Independent Business, NFIB, which has endorsed our bill, show that the constant changes in the tax code are among the top concerns of small business owners. Indeed, I think the Senator from Pennsylvania and I have both found in talking to smaller employers in our States that they are yearning for some certainty in tax policy. They simply cannot deal with a tax code where one year the deduction is at one level, and the very next year it is uncertain whether Congress is going to renew the provision or let it expire.
The level of expensing allowed under section 179 has been unpredictable from year to year, and has changed four times in the past 7 years. This uncertainty makes it difficult or even impossible for small employers to take full advantage of this tax incentive in their long-term investment planning. Our bill would fix this problem by making the maximum expensing allowable under this section permanent at $250,000 and indexing it for inflation. We also expand the ability of small employers to use simplified methods of accounting.
Let me give a real-life example of what the small business expensing and the bonus depreciation provisions can mean. Last year I spoke with Rob Tod, the founder of Allagash Brewing Company, which is based in Portland, ME. Allagash makes some of the best craft beer in the country. In fact, Maine is known for its craft beers. Well, Rob's operation started out as a one-man show in 1995. In the 19 years since, it has grown into a firm that employs approximately 65 people and distributes craft beer throughout the United States.
Rob noted to me that his company's ability to expand was fueled in part by bonus depreciation and section 179 expensing. New to the craft beer business,
Rob had difficulty obtaining financing on favorable terms, but these cost recovery provisions allowed him to pay less in taxes in the years he acquired the equipment needed to expand his business. Those tax savings were then reinvested in his business, thus creating jobs.
Just think about that. What a difference these provisions made to this company, which has gone from a one-man operation to employing 65 people. This economic benefit is multiplied when you consider the effect of Allagash's investment on the equipment manufacturers, the transportation companies needed to haul new equipment to his brewery, the increased inventory, and the suppliers of the materials needed to brew additional beer.
We are all too familiar with the litany of polls showing how little faith the American people have in their elected leaders and how much they want us to work together to solve our Nation's problems.
I have been privileged to work with Senator Casey to do exactly that. The legislation that we have introduced is neither a Republican nor a Democratic proposal. It is, instead, a bipartisan plan to help spur America's economy, to assist our small employers, and, most of all, to create good-paying jobs. I urge my colleagues to support our bipartisan bill. I would ask our leadership to bring this legislation to restore economic growth and job opportunity to the Senate floor for action as soon as possible.
I yield to my colleague from Pennsylvania for his remarks.
Mr. President, I want to commend the Senator from Pennsylvania for his remarks. I think it is obvious that both of us have reached out to employers in our States and asked them what would make a difference. What would allow you to create new jobs, preserve the ones you have, and pay your workers more?
To a person, they identified provisions in the Tax Code, the uncertainty that occurs when they expire, the difficulty to plan and to hire new workers when you do not know what the Tax Code is going to be. That formed the basis for our bipartisan bill. We listened to what employers were telling us. I hope more of our colleagues will help us bring this bill to the Senate floor.
Every day that I am talking to an employer in Maine, I am asked: Are the provisions that expired at the end of last year going to be renewed? Will they be retroactive? Can we count on them?
They put their hiring plans on hold until we give them the certainty that they deserve. So, again, it has been a great honor to work with my colleague. I do urge our leaders to bring this important bill to the Senate floor.
Madam President, I do have another statement that I would like to give seeing no one seeking the Senate floor. I ask unanimous consent to speak for up to 10 minutes as in morning business.
Madam President, the world's best athletes have come together in Sochi, Russia, for the 22nd Winter Olympic Games. Among them is Russell Currier, from the small northern Maine town of Stockholm. It is in Aroostook County. It is very near Caribou where I grew up. I rise today to celebrate the determination, hard work, and community spirit that enables Russell Currier to represent our great country in the Olympic Games.
Russell competes in the biathlon, the demanding and increasingly popular sport that combines cross-country skiing with sharpshooting. He secured his place on America's team by winning three out of four qualifying races in January at the U.S. biathlon Olympic trials.
But Russell's snow-covered trail to Russia began long before that. Fourteen years ago, as a seventh grader, he joined the local Nordic skiing program. A former coach described him as a quiet youngster with no particular interest in the sport.
That quickly changed. The next year, Russell won a county-wide middle school championship. The year after that, he won third place at the junior nationals. Caring coaches and encouraging teammates lit a fire in him that burns so brightly today.
On Russell's personal profile on the U.S. Olympic Team Web site, he wrote that his favorite quote is, ``Less talking, more doing.'' He has embraced that motto with all of his strength, and his perseverance has turned his Olympic dream into a goal he has achieved.
I have a particular rooting interest in Russell's success. He and his parents, Debbie and Chris, are graduates of Caribou High School, as am I. Debbie and I grew up spending summers at Madawaska Lake at camps that were very near each other, and we spent endless summers playing together. I have known this wonderful family for many years, and I am thrilled for them. While the world watches the Winter Olympics, the entire population of Aroostook County and indeed of all of Maine will be riveted to the biathlon competition.
As the name suggests, the town of Stockholm, ME, was settled by Swedish immigrants. When the first 21 families came to Aroostook County in the 1870s, they brought with them an unsurpassed work ethic, a strong sense of community, and a love of skiing. In fact, the entire ski industry of Maine, both Nordic and alpine, can be traced to these hardy, outdoors-loving newcomers.
Nearly a century and a half later, the work ethic and the love of skiing remains strong, and the sense of community is more powerful than ever. When Russell won his place on the U.S. team, friends and neighbors held a fundraiser, a spaghetti dinner at Caribou High School, serving up more than 300 spaghetti dinners so Russell's parents, Debbie and Chris, could make the long and expensive trip to Russia to cheer on their son.
I ask unanimous consent to have printed in the Record an article the local newspaper, the Aroostook Republican, published on the community's support behind the Currier family.
Russell's dedication and his community spirit have a strong ally in this remarkable story, the Maine Winter Sports Center. The center was founded in 1999, with the purpose of rekindling Aroostook County's skiing heritage, spurring economic development in that rural region, bringing families together in wholesome recreation, and countering the sedentary lifestyle that leads to so many health problems among our greater population. The Center's world-class facilities in Fort Kent and Presque Isle, ME, have hosted national and international cross-country and biathlon competitions. For the 2006 and 2010 Olympics, 13 Members of the U.S. biathlon team trained at the Maine Winter Sports Center, but Russell is the first homegrown Olympian to come up entirely through the center's program.
Russell Currier demonstrates that growing up in a community that works hard and works together can be such a great advantage when combined with individual desire, determination, and skill. The success Russell has achieved in realizing his Olympic dream and the support along the way that he has received are truly inspiring.
I am so proud of Russell and all who helped him achieve his dream. I wish him and his teammates all the best.
I suggest the absence of a quorum.