U.S. Rep. Vern Buchanan is announcing the Florida Chamber of Commerce is endorsing his bill seeking to make it easier and less costly for entrepreneurs to start a new business.
The Sarasota Republican’s “Support Our Start-Ups Act” seeks a fourfold increase in startup costs small-business owners can deduct from their federal income taxes, raising it from $5,000 to $20,000.
“in Florida alone, there are more than 2 million small businesses, which create two out of three jobs in Florida,” said David Hart, Florida Chamber’s executive vice president. “The Support Our Start-Ups Act removes some of the initial barriers to creating a business, putting money back in the pocket of our state’s best job creators – setting start-ups on a path toward success.”
Only around 20 percent of new small businesses survive their first year, according to the Bureau of Labor Statistics. Support Our Start-Ups can help businesses stay afloat and grow by making it significantly less costly to start a new business.
“At a time when millions of Americans are unable to find good-paying jobs, the government should be doing all it can to encourage entrepreneurs to create jobs,” said Buchanan, a senior member of the tax-writing House Ways and Means Committee. “I want to make it easier and less costly for hard-working Americans to realize their dream of starting a business.”
Buchanan, himself a self-made businessman, said that he knows firsthand the costs of starting a new business. Before even opening their doors, entrepreneurs must often pay legal and consulting fees, marketing research, recruiting expenses and office supplies.
A longstanding principle of tax law has prohibited the deduction of these initial costs until the business opens – with only a $5,000 maximum deduction.
Buchanan is a widely respected leader in the state’s business community. With a 40-year business career, he chaired both the Florida Chamber and the Sarasota Chamber of Commerce. He also served as a U.S. Chamber board member, and was inducted into the Tampa Bay Business Hall of Fame in 2005.