Dear Members of Congress,
American Commitment supports the Tax Relief for American Families and Workers Act (H.R. 7024), which will likely receive a vote this week.
The Tax Relief for American Families and Workers Act extends three critical cost recovery provisions that encourage capital investment and will expand the supply-side of the US economy: allowing immediately realization of the R&D credit, restoring full, immediate 100 percent expensing, and postponing the switch from EBITDA to EBIT for the limitation on deductible interest expense.
Tax Foundation analysis finds that of the 11 expiring provisions of the Trump tax cuts, these are the three most significant for economic growth:
Unfortunately, the bill fails to make any of these provisions permanent, which limits their incentive effects. However, the historic bipartisan support for this legislation and its enactment into law, if that occurs, would lay a strong foundation for making these provisions permanent when the broader debate over extending TCJA proceeds in the next Congress. On that basis we consider a vote for this bill a vote to move towards permanent pro-growth policies.
The TRAFWA also provides an expanded child tax credit that would embed more income redistribution to non-income-tax-payers in the tax code, which we do not support. On balance, however, the beneficial business extenders are more significant and justify supporting the bill.