VSB Spotlights Financial News Report: Staten Island Chamber Of Commerce Backs Sen. Schumer’s Call For Business Tax Relief
Legislation would allow small business owners to write off the entire cost
of new capital equipment purchases on their taxes
STATEN ISLAND, N.Y. (May 29, 2012) – As a service to our community, Victory State Bank wishes to share the following business news:
U.S. Senator Charles E. Schumer, joined by business leaders from across Staten Island; Edward Gomez, an Island restaurateur owner, and Linda Baran, president of the Staten Island Chamber of Commerce President, is pushing his proposal to make it easier for small businesses across New York to succeed, create jobs and act as engines for economic growth, through real tax relief that lowers the cost of doing business.
The Small Business Jobs and Tax Relief Act of 2012 would allow small business owners to write off the entire cost of new capital equipment purchases on their taxes, saving thousands of dollars in year-end tax costs.
The bill also contains a 10 percent tax credit for each new worker hired in 2012, reducing the tax burden for businesses that create new jobs by up to $500,000. This proposal would make it easier for small business owners, like Gomez’s Da Noi Restaurants and 120 Bay Cafe in Staten Island, to invest in their companies and their workers through two tax cuts that aim to encourage capital investment and workforce expansion. Schumer’s proposal has the potential to save the company tens of thousands of dollars in lower taxes.
“Small businesses throughout the New York region, like Da Noi and 120 Bay Cafe, are in prime position for growth, and the federal government should be doing more, not less, to spur hiring,” said Schumer. “That is why this small business proposal, which aims to encourage business investment and growth through new tax cuts for businesses and encouraging business investment, is right on the money for New York’s small companies. This new proposal rewards actual job creation by true small businesses, which could be a game-changer for the Staten Island economy and local residents. As our economy continues to turn the corner, I will fight tooth and nail to bolster this trend and get this job-creating bill passed.”
The Small Business Jobs and Tax Relief Act of 2012 encourages business investment and growth in a number of ways, including the ability for businesses to write off, or depreciate, the entire cost of major purchases made this year. For instance, Schumer noted that 120 Bay Cafe could use this 100% bonus depreciation for the cost of the HVAC system and other equipment. Under this proposal, 120 Bay Cafe can write off the cost of this equipment, such as the HVAC system, immediately. This proposal will reduce small businesses average costs of capital across all investments by more than 75 percent according to the Department of Treasury. What’s more, every $1 of tax cuts devoted to accelerated depreciation generates about $9 of GDP growth.
This small business jobs proposal would also create a new incentive to help small businesses add jobs this year. Specifically, Schumer’s proposal would make a 10 percent tax credit available to employers for new payroll in
2012. This portion of the proposal is targeted at truly small businesses across Staten Island, the state and the country, by capping this benefit of the credit at $500,000 per employer.
About Victory State Bank:
VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online http://www.victorystatebank.com .
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