The Small Business Jobs Act would improve the tax treatment of investment but the proposal stops short of full expensing, leaving room for improvement.
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Rather than continue down the path of growing debt, lawmakers should craft a comprehensive solution. International experience cautions against tax-based fiscal consolidations, but modest tax increases may be part of a successful debt reduction package.
By letting the corporate surtax expire, eliminating taxes on GILTI, and embracing full expensing, New Jersey would take important steps toward creating a more welcoming and competitive tax environment.
At a moment when countries are trying to make production more environmentally friendly and shore up supply chain weaknesses, capital investment is critical. Rather than adopt temporary policies that phase out and expire, policymakers should focus their efforts on long-term reforms to support investment.
A recently enacted bill in Mississippi made the Magnolia State only the second state in the country to make full expensing permanent. The bill joins reductions to the individual income tax and capital stock tax rates, already in progress, as model, pro-growth reforms for the region.
Tax reform should be about increasing fairness. And the way to get there is by reducing complexity and double taxation, not by doubling down on them.
The tax treatment of research and development (R&D) expenses is one of the biggest issues facing Congress as the year winds down.
The Senate has begun debate on the so-called Chips bill, which would provide $52 billion in grants and $24 billion in tax credits to supposedly strengthen the production of semiconductors in the U.S.
Policymakers should continue to focus on longer term impacts rather than emphasizing the short-term stimulus effects of tax cuts.
The U.S. tax system is biased against capital investments. Ending these tax penalties would boost economic output, productivity, and employment.