Show Revised Tax Laws Needed To Boost Job Formation Congressional tax law writers were recently urged by the National National National Na Na- A Association of Manufacturers Manufacturers tuners to abandon the out outmoded model concept of depreciation tion and to adopt the capital recovery allowance proposal of HR nR fR as a simple and effi effi- efficient efficient dent method for fur greater re rc rc covery of real capital costs coss The system would allow machinery machinery machinery ma ma- chinery and equipment to be written off ofT in five years while buildings and structures would be written off ofT in ten years The NAM said the short short- term loss los of tax tu revenue from business and industry would be 11 J. J more than Ihan offset by Industrial expansion and new jobs created created created cre cre- by the Increased cash flow resulting from a capital recovery recovery ery cry allowance system In testimony before a joint hearing of the Senate Select Committee on Small Bu Business ness and the Senate Finance Subcommittee Sub Sub- Subcommittee committee on Financial Markets Markets Mar Mar- Chairman Roland M M. Bixter Bixler Bixler Bix Bix- ler ter of f the NAM Task Force on Small Business Tax Policy said the capital recovery allowa allowance ce would increase the ability of smaller firms to generate Internal Internal internal Inter Inter- nal capital which is needed for modernization and expansion expansion expansion sion of their facilities their markets and their payrolls Mr Bixler president and cofounder cofounder cofounder co- co founder of J T B T B-T Instruments Inc a small manufacturer of electronic components in NewHaven New NewHaven NewHaven Haven Conn said tax policy on Indu industrial trial facilities should move away from a fixation with useful lives' lives and attempts to predetermine how long an asset can be efficient in producing ing income We should substitute substitute sub sub- Mr Bixler said a concept of recovering invested invest d capital as as rapidly and efficiently efficient efficient- ly as possible so it can be re reinvested reinvested reinvested re- re invested in our businesses businesses The NAM spokesman point point- pointed ed cd out that Canada has recently recent recent- ly Iy tried a year two-year tax write write- off period for for machinery and equipment which the thc Liberal government has now decided to tomake tomake tomake make a permanent feature of the C Canadian nadian tax system Mr Bixler said the United States State now ranks low among competing competing competing ing countries which employ rapid capital recovery systems including the United Kingdom which allows a per cent write-off write for machinery in the first year |