Why Policy Dictates the Economic Outlook
Last year, small businesses made capital investment decisions over “whether an expiring tax provision, Sec. 179—which allowed for $500,000 of accelerated depreciation for equipment purchases—would be continued, or whether a scaled-down version with a much lower threshold of $25,000 would take its place,” according to The Wall Street Journal.
In December, Congress reinstated the larger Sec. 179 deduction for 2014, meaning that small businesses were pushed to make decisions surrounding equipment purchases before knowing what the tax provision stated. On the first of January, the deduction dropped back to $25,000.
Such temporary tax and budgetary policy making creates roadblocks for consumers and business to plan and invest in the future. Comprehensive tax reform and annual federal budgets are a necessity for businesses to plan their capital investment and capital expenditures budgets. Inevitably, legislation creates economic ambiguity. In order to improve the economic outlook, more stable laws are vital.
Capstone Business Funding, LLC helps clients build sturdy outlooks for their economic future by providing robust services. For years, we have helped organizations get the immediate cash they needed without the typical red tape that most banks require. For more information about our business funding solutions, Single Invoice Factoring, give us a call today at (347) 821-3400 and speak to a representative.