This week Senators Collins (R-ME) and McCaskill (D-MO) introduced a comprehensive end-of–the-year tax bill that contains a lot for manufacturers to like. The bill includes provisions that will benefit employers and employees alike by fostering an environment well-suited toward job creation, innovation, and economic growth.
It includes extensions of expiring tax provisions, like the R&D Tax Credit and 100% Bonus Depreciation, that are critical to manufacturers’ ability to invest in their businesses for the future. Tax credits for investment in high-tech small businesses in this legislation offer incentives to innovate in the United States. The bill also provides increased funding for highway and clean water projects.
The Collins-McCaskill bill offers some relief from the stranglehold that regulation has on American businesses. The legislation would put a stop the EPA’s harmful Boiler MACT rules. Additionally, it would require federal agencies to account for the true cost of each regulation – in a sense, auditing themselves to ensure that regulatory action won’t send shockwaves through our economy.
Unfortunately the good provisions and the positive, pro-growth environment they would create will be completely undermined by the punitive ways this bill is paid for.
It is yet another unfortunate example of big government looking to pick which sectors of our economy should bear the brunt of the tax burden. Targeted tax hikes on energy companies and manufacturers and a surtax on higher-income Americans will punish job creators and create a significant obstacle toward their innovation, investment, and ability to create jobs.
Tax increases in a time where we are trying to get America back on its feet are not an acceptable option – no matter what the positives of this legislation are. Doing so will be taking one step forward and two steps back.
There is so much good in this bill – let’s find a way to utilize those provisions to create the pro-growth, pro-jobs atmosphere that America so badly needs right now.
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