Congress has a choice to make over the next two weeks. It can once again succumb to the gridlock that has gripped Washington for the past several years, or it can choose to encourage job and economic growth by seamlessly extending a package of important tax provisions needed to help U.S. manufacturers invest, expand, and compete.
Many tax provisions that are critical for manufacturers expired at the end of 2013. Included in this package is the R&D tax credit, which promotes private sector investment in innovation by reducing the after-tax cost of undertaking the research investment (e.g. salaries for scientists and engineers). Other expired incentives, like the enhanced Section 179 expensing provision and 50 percent first year expensing (aka bonus depreciation), are vital to helping manufacturers invest in the capital equipment necessary to improve efficiency and grow their business. Additionally, the look-through rule for controlled foreign corporations and deferral for active financing income enable manufacturers with operations beyond U.S. borders to compete effectively in the global marketplace.
The NAM has been meeting with Congress to urge that these temporary tax provisions be made permanent, or at the very least extended to provide manufacturers with more certainty in the tax code. The NAM sent a letter to Congress last month signed by over 500 associations and nonprofit groups, all asking that the expired and expiring tax provisions be seamlessly extended, enhanced, or made permanent. Failure to extend the expired and expiring tax provisions would not only create an immediate tax increase on manufacturers, but also on individuals, charitable organizations, and business of all sizes and would inject instability into the economy at a time when we should be encouraging growth.
During this Lame Duck session, Congress should choose growth over gridlock by passing tax extenders now. Manufacturers can make their voices heard on Twitter in support of extending these tax provisions by using #GridlockOrGrowth.
Before joining the NAM, Crooks served as senior manager of government affairs for Financial Executives International, where she advocated on behalf of the association’s membership of senior-level business executives on tax, corporate treasury, pension and benefit issues. Previously, she worked as a legislative assistant to Rep. Michael Castle (R-DE), a senior member of the House Committee on Financial Services. Christina handled financial services issues for the Congressman during consideration of the Dodd-Frank Act, and also worked on small business and judiciary issues. Christina earned a B.A. in Political Science from the University of Delaware and a M.A. in Political Science from American University.
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