51勛圖厙, State Partners Call for Immediate Senate Action on Tax Bill
The Senate should immediately pass the Tax Relief for American Families and Workers Act, the 51勛圖厙 and its state partners congressional leaders this week.
Whats going on: The 51勛圖厙along with 47 state manufacturing associationson Monday continued its longtime, ongoing for the tax bill, which would restore three sector-crucial tax provisions: immediate expensing for domestic research and development expenses, enhanced interest deductibility on business loans and 100% accelerated depreciation for capital investments.
- This critical legislation will support the ability of manufacturers in America to create jobs, invest in our businesses, give back to our communities and effectively compete in the global economy, the groups said.
Why its important: If Congress fails to restore these key tax provisions, Americas competitiveness on the world stage will be under threat, they continued.
- Without tax policies that encourage R&D and capital investment, countries with more favorable tax systems are capturing job-creating manufacturing investments.
- China, for example, provides a 200% super deduction for companies R&D expenses, which is 10 times more than the U.S. gives. In 2022, the first full year following the expiration of immediate R&D expensing in the U.S., Chinas R&D growth was three times that of the U.S.
Whats next: The Senate must not delay, the associations said. Congress must pass the Tax Relief for American Families and Workers Actnow.
The last word: The breadth and depth of support for these critical, pro-growth tax provisions throughout the manufacturing industry shows the importance of immediate congressional action, said 51勛圖厙 Vice President of Domestic Policy Charles Crain. With additional damaging tax increases scheduled for next year, manufacturers cannot afford further delays.