Puna Kamali'i Flowers, Inc. Supports H.R. 3841, the "Small Business Tax Relief Act of 2005"

Kea`au, HI, October 14, 2005 --(PR.com)-- Puna Kamali'i Flowers, Inc. urges small business owners to support H.R. 3841, the "Small Business Tax Relief Act of 2005."

As a small business, we understand the financial burdens placed upon such businesses and are confident that this legislation will enable local businesses to retain more revenue.  This retained revenue would further enable business owners to invest in our businesses, our employees, and our local economy.

Our business as a disability services provider relies heavily upon funding from outside sources.  Just two months ago we were awarded a contract with U.S. Social Security Administration as a Ticket to Work Employment Network. We now understand that funding may be cut for this program due to Hurricane Katrina.  Although we are sympathetic to our neighbors on the mainland, this loss of funding is impacting our business, our employees, our clients, and the local business community.

The main provisions of this bill would:

* Provide self-employed individuals with a deduction for health insurance premiums in calculating federal payroll taxes;

* Permanently extend small business expensing at $100,000;

* Increase the deductibility of meals and entertainment expenses from 50 percent to 80 percent;

* Phase out the alternative minimum tax for individuals through 2009;

* Provide small business employers a tax credit for expenses for long-term training of employees in highly skilled small business trades;

* Permanently extend the work opportunity tax credit and the welfare to work tax credit;

* Increase the annual contribution limits to "simple" pension plans to match that permitted to 401(k) plans;

* Provide a 15-year depreciation recovery period for replacement roofs of 15 and make permanent the 15-year depreciation for qualified leasehold improvement property and qualified restaurant property;

* Modify the depreciation rules for computer equipment, software, and vehicles;

* Simplify estimated tax rules by reinstating the 90 percent of current year or 100 percent of prior year's tax liability for taxpayers to avoid a penalty for underpayment;

* Amend the Internal Revenue Code to treat as a sole proprietorship (rather than a partnership) a business that is owned and operated by married taxpayers;

* Increase the net self-employment income filing threshold amount ($400 under current law) to $1,000 and index it for inflation;

* Provide an annual standard home office deduction of $2,500 (indexed for inflation);

* Extend the time for making S Corporation elections;

* Provide taxpayers the right to have an IRS examination take place at a site other than the taxpayer's home or business premises; and

* Lower from 10 percent to 2 percent the penalty on employers who pay the correct federal tax deposit but make that payment in an incorrect fashion.

Puna Kamali'i Flowers, Inc. is a small, family-owned business that provides services for the developmentally disabled, including habilitation-supported employment, personal assistance and transportation.  These opportunities are created through the production of foliage materials and packing materials for the floricultural industry, as well as a confidential document shredding service.  Puna Kamali'i Flowers, Inc. also provides group island tours for disabled individuals.  More information about Puna Kamali'i Flowers, Inc. is available online at http://www.punakamaliiflowers.com.

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