Earlier this month, Congress unveiled the bipartisan Tax Relief for American Families and Workers Act—and now it’s time it passed the legislation, the NAM recently urged congressional leaders.
What’s going on: The bipartisan tax package—a compromise between House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR)—would restore immediate R&D expensing for businesses, reinstate full expensing (also known as 100% accelerated depreciation) for businesses’ capital investments and return the U.S. to a pro-growth interest deductibility standard.
- Thanks to the NAM’s advocacy, the House Ways and Means Committee supported moving the legislation to the House floor by a bipartisan vote of 40–3.
- A vote on the House floor is expected tomorrow or Thursday, thanks in part to the NAM’s work.
Why it’s important: “All three of these tax policies have a long history of bipartisan support and are critical to strengthening America’s global competitiveness,” the NAM, along with more than 260 other businesses and allied groups, told House Speaker Mike Johnson (R-LA), House Minority Leader Hakeem Jeffries (D-NY), Senate Majority Leader Chuck Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY) earlier this month.
- The policies “have enabled U.S. businesses to innovate, create [well]-paying jobs, protect our national security and remain at the cutting edge of the global economy. Restoring these provisions will have a profound impact on business investment, economic growth and job creation.”
Small businesses: The policies are particularly crucial for small and medium-sized manufacturers, Courtney Silver, president and owner of precision machining company Ketchie Inc. and chair of the NAM’s Small and Medium Manufacturers Group, said.
- The absence of these three tax “provisions directly impacts our ability to invest in new technology, to purchase equipment and to create jobs,” she said.
- “Nearly 90% of manufacturers share similar concerns about their higher tax burden, and if left unaddressed, our companies and our teams will have a harder time securing an edge over our global competitors. … Passing this law would give companies like ours the certainty needed to plan for growth and more investments.”
What you can do: Your members of Congress need to continue to hear why it is imperative they support this tax package. Add your voice at the NAM’s Tax Action Center.