Citing a need to stimulate the economy and manufacturing, U.S. Rep. Phil English said his provision allowing businesses to increase the deduction for equipment in the first year will be included in the proposed Growth and Jobs Act of 2003.

Under the provision, companies would be able to deduct half of their equipment investments from their taxes in the first year. Currently, the deduction is 30 percent, with that provision set to expire next year.

Earlier this year, English sought a 100 percent recovery for equipment purchases, but that figure had to be reduced to 50 percent to get included in the bill. His provision will be taken up today by the U.S. House of Representatives' Ways and Means Committee, which he sits on.

Speaking at Joy Cone Co. in Hermitage Monday afternoon, the 3rd District Republican congressman from Erie said the provision would help manufacturers deal with the high costs to update equipment. As a result, he said, that will help create jobs.

"The 50 percent expensing measure included in the (U.S.) House bill makes it easier for employers to modernize plants and equipment and more affordable to purchase locally produced inputs like tool and die products,'' English said. "Obviously, anything that boosts sales for local employers is good for the local economy.''

Also, allowing businesses to take the deductions quicker will allow them to compete globally.

"I believe if a company can make these investments without the tax man getting in the way, they can compete overseas,'' he said.

Other parts of the measure would allow the amount small businesses can expend on their taxes between 2003 and 2005 to increase from $25,000 to $75,000 and to increase the definition of a small business from $200,000 of capital purchases to $325,000. For families, the bill would give the marriage penalty some relief by accelerating the expansion of the 15 percent bracket and the increase in the standard deduction for married couples filing joint returns during the same period.

The House bill would cut taxes by $550 billion. It is going against a Senate version that seeks $350 billion in tax cuts.

Democrats have blasted much of the tax cuts, saying the country can ill afford them at a time when the nation is running a budget deficit and must pay for the war against Iraq along with a portion of rebuilding the Middle East nation.

English said social services wouldn't be squeezed as a result of the cuts, and the economy needs to be stimulated.

"Much of what's being said now was said in 1997 when we enacted tax relief and that got us to a (federal budget) surplus,'' he said. "There's no surplus now because of the bad economy. We're very confident this tax cut will pay for itself not only eventually, but quickly.''