Treasury Secretary Paulson has called for it, Chairman of the Ways and Means Committee Charles Rangel has proposed it, Bulgaria has already done it. Now we can add more voices to the growing chorus. Yesterday Minority Deputy Whip Eric Cantor introduced the Middle Class Jobs Protection Act (news release here) . Notably, the bill will slash the corporate rate from 35 percent to 25 percent.
Sound familiar? We thought so, too. It’s in fact exactly what the NAM has proposed in our Tax White Paper – A 21st Century Tax Policy to Promote Job Creation and Economic Growth.
In addition to a corporate rate cut, Cantor’s bill (H.R. 4995) also provides for 50 percent bonus depreciation for 2008 and 2009, brings back the five-year carry back period for net operating losses, expands section 179 expensing for purchases up to $1 million, and increases the carry back period for business tax credits from one year to three.
They call it middle class jobs protection – we call it pro-growth and pro-manufacturing.
Dorothy Coleman is vice president of tax and domestic economic policy at the National Association of Manufacturers.