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Show Rep. King Introduces Small Business Tax Relief Bill Small businessmen could plow as much as 20 per cent of their profits back into their business and deduct this amount from the annual federal tax under a bill introduced recently by Rep. David Da-vid S. King of Utah. "Taken as a whole, small business busi-ness has not grown as other segments seg-ments of our economy have in the last six or seven years, because be-cause it has been crippled by the tax burden," Rep. King said. "This bill would ease that burden bur-den and give the small businesses which are badly pinched for capital the opportunity to plow some of their profits into their own expansion," he said. Easing the tax burden would not necessarily reduce the federal fed-eral revenue from this segment of the economy, the congressman observed. "I am convinced that this legislation leg-islation in the long run would stimulate enough growth in our small businesses to more than offset the immediate slackening in the revenue," Mr. King said. Under Mr. King's bill, income reinvested in the businesses by three ways expansion of depreciable de-preciable assets, inventory, and accounts receivable could be counted in the deduction. The deduction on the reinvested reinvest-ed income would be limited to nn i. i 1 : cm per ecu 1 vl me iic 1 muuiiit;, and could not exceed $30,000, he explained. This plow-back principle has the enthusiastic support of Rep. Tom Steed of Oklahoma, chairman chair-man of the House Select on Small Business, which has been studying study-ing the problems of small business busi-ness intensively for several years Mr. King said. Similar legislation has also been introduced by the Senate Small Business Committee Commit-tee headed by Sen. John Spark-man Spark-man of Alabama. The rate of small business failures fail-ures has been rising steadily since 1953. In 1958 it reached 56 per 10,000 the highest since the depression years. In 1958, the Small Business administration ad-ministration reported 14,964 of the small busines failures, also the highest figure since the depression. |