On This, Agreed: A Need to Encourage Growth

By January 19, 2008Economy, Taxation

The Wall Street Journal this morning surveys business associations for their views on the need and best approach for policies to stimulate economic growth: “Business Seeks Share of Stimulus.” Particularly relevant passage:

The National Association of Manufacturers is pressing for a reduction of the corporate capital-gains tax rate to 15% from 35%, as well as renewal of the R&D tax credit. “When you’re looking to create jobs and stimulate the economy, that’s one that would be helpful,” says Dorothy Coleman, NAM’s vice president of tax and domestic-economic policy.

We released our agenda for economic growth yesterday, our recommendations that would maximize the effectiveness of any quick policy action Congress moves on. They are:

  • A Retroactive, Permanent and Strengthened R&D Credit.
  • Bonus Depreciation
  • A Five-Year Carry-Back for Net Operating Losses (NOLs).
  • Repatriation of Foreign Earnings
  • Lowering the Corporate Capital Gains Rate
  • “Moving forward, as outlined in NAM’s white paper, A 21st Century Tax Policy to Promote Job Creation and Economic Growth, there are a number of other tax law changes that policy makers should consider to promote U.S. jobs and competitiveness and ensure continued economic growth,” [NAM President] John Engler said. “In particular, we urge policy makers to consider our recommendation to reduce the corporate tax rate to 25 percent or lower. American businesses compete in a fiercely competitive global marketplace, and the more efficient and competitive we are, the healthier the U.S. economy.

    You can find the white paper at www.nam.org/taxwhitepaper

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