Washington, DC, Feb 16, 2007 -

U.S. Representative John Carter (R-Round Rock) today voted along with a majority of the House to pass H.R. 976, the Small Business Tax Relief Act of 2007. The package is likely to be paired with the Senate-passed version of H.R. 2, which calls for an increase in the minimum wage.

“This tax package will make a difference in the coffers of small businesses across the country to help offset the cost of an increased minimum wage,” Congressman Carter said. “Small businesses are the engine that drives our economy. I hope the $2 billion of tax relief provided will be a starting point for the final version of the bill negotiated with the Senate.”

• Increase the amount of purchases that can be expensed from $125,000 and $500,000;
• Extend the Work Opportunities Tax Credit (WOTC) for one year (through the end of 2008) with modifications;
• Extend the restaurant FICA tip income tax credit at the current level of $5.15 per hour;
• Allow spouses that are the only active participants in a business who file a joint return to elect not to be treated as a partnership for Federal income tax purposes;
• Close a loophole related to lower tax rates on dividends/cap gains; and

Extends the length of time before interest suspension occurs for those who underpay their taxes to 22 months.