The US House voted unanimously in favor of H.R. 4840 which would extend for two years the increased level of Section 179 expensing. The Tax Simplification for America?s Job Creators Bill of 2004 would retain the current $100,000 limit set to return to $25,000 after 2005. The bill also extends the qualification to include software as Sect. 179 property.

Next up, the US Senate, which will review the bill later.

California SB899 which was signed by Governer Schwarzenegger in April appears to have started to reduce overall workers compensation rates from 2% to 22%. ?Reforms to the workers? compensation system are working and rates are trending down,? said Charles Bacchi, California Chamber advocate. Most businesses, whose policies renew in July or later are expected to see reductions in their rates. Additional reforms which are to take effect January 1, 2005 are expected to reduce rates even further.

In an attempt to exempt VOIP (Voice Over Internet Protocol) from state taxes and regulation, The Senate Commerce, Science and Transportation Committee on Thursday approved the VOIP Regulatory Freedom Act of 2004. Sponsored by Senator John Sununu, A New Hampshire Republican said in a statement that he hopes Congress will pass the bill this year.

Voice over IP is a promising service that allows the user to talk over the Internet using specially designed phone equipment. With the promise of little or new cost to make phone calls anywhere in the world, VOIP is expected to be the next ?hot? business concept.

So, why all the effort regarding an issue that hasn?t even been addressed by any state yet? Taxes of course. Just look at the percentage of each telephone bill that is attributed to various Federal & state taxes. Also, considering these are taxes are often enacted without any democratic voting, you can see why VOIP is a prime target.

We are happy to see that a few of our legislators are acting in our best interest.