SPRINGFIELD, Ill. (NEXSTAR) — What started as a simple idea may soon become law, if the Ace Sign Company gets its way.
It teamed up with former small business owner and Springifield Representative Mike Murphy to give small businesses a new way to save.
“Small businesses starting up today, there are a lot more challenges than there ever used to be,” Bringuet said. “I think a little support and a little piece of legislation like this will show that support.”
“I have run into opportunities with people that I know who have run into this same challenge,” Bringuet said. “As you explained it to them, you kind of see their wheels turning, and they say, why does this not exist already, it seems to simple.”
The way it works now, businesses have to spend their surplus funding they have at the end of the year, or else they get hit with pretty heavy taxes on it.
There is a system to make sure businesses are taking advantage of the new policy. If any of the money is spent on anything besides capital expenditures, the business will have to pay back taxes and 10 percent in penalties of whatever they spent.’
“You still have to use it for something that is not taxable anyways,” Murphy said. “So you are not avoiding taxes. You are allowing yourself to save, and are using that money a little bit smarter and in a better manner.”