Neil deMause: The Website

The “Geoffrey Loophole” is not only a way that big corporations get out of paying taxes that their small-business competitors have to, it’s also the only tax dodge named after a cartoon giraffe:

When the Massachusetts passed its much-delayed state budget last week, it included an obscure tax-law change that could be crucial for small-business owners concerned about unfair competition. By becoming the 22nd state to adopt “combined reporting” legislation, Massachusetts lawmakers are hoping to put a stop to a longstanding practice that, they say, gives large corporate chains an unfair advantage over their smaller competitors at tax time… [read more]

The D.C. sick-leave bill saga finally reaches its denouement, I hope:

Details of Washington, D.C’s. new law requiring all city businesses to provide paid sick leave to their employees were finally released this week, clarifying the last-minute amendments to the legislation that will exempt recent hires and certain classes of workers, as well as allowing hardship exceptions for employers… [read more]

For those interested in the issue, it’s also worth checking out the FSB discussion page on sick-leave legislation, which is surprisingly thoughtful as online forums go.

In which I examine the business tax breaks in the final version of the economic stimulus bill signed by President Bush, and whether they’ll actually, you know, help stimulate the economy:

The economic stimulus bill signed into law by President Bush today included one tax break for small businesses added by the Senate, but lost another as Congressional leaders bowed to White House pressure to move quickly without adding too many amendments.

The key addition affecting small businesses is an expansion of “bonus depreciation,” which allows investments in tangible property, computer software, or improvements to leased property to be more speedily depreciated, adding to a business’ tax savings. Businesses of all sizes will be allowed to depreciate in this tax year 50% of the cost of an asset put into use in 2008.

The Senate Finance Committee estimates that this amendment will funnel $43.9 billion in federal tax savings to businesses over the next two years… [read more]

The D.C. city council voted yesterday to approve its worker sick leave bill. Next up, another vote!

The Washington, D.C., city council voted 11-2 last night to approve a bill requiring all employers to grant sick leave to their workers, but the proposal still has hurdles to clear before becoming law.

The Accrued Sick and Safe Leave Act mandates that all businesses within the District provide their employees with leave time, which can be used in cases of illness or domestic abuse or to care for a sick family member… [read more]

If you’ve been dying to know what Congress’ economic stimulus package means for your Section 179 deductions, your prayers have been answered:

The Senate version of an economic stimulus bill, which could come to a vote this week, contains several tax provisions intended to benefit small businesses, including some not present in the House bill passed last week.

First and foremost, the Senate bill, proposed by Senate Finance Committee chair Max Baucus (D-Mont.), would extend a helping hand to businesses facing large operating losses in either the 2006 or 2007 tax year, allowing them to write off those losses against gains as far as five years back, rather than the current two-year limit… [read more]

Washington, D.C., is considering a requirement that all city businesses provide paid sick leave to their employees; I take a look at the issue for Fortune Small Business, which, for obvious reasons, is mostly concerned with what this means for you, Al “Small Business Owner” Franken:

Washington, D.C., is moving forward with a bill that would make it the second city in the U.S. to require all businesses, including those with fewer than 10 employees, to provide paid sick leave for their staff.

With a city council vote on the “Accrued Sick and Safe Leave Act” currently scheduled for Feb. 5, local businesses, worker advocates, and elected officials are locked in a debate over whether the measure would be a drain or a boon for small businesses… [read more]