Washington, D.C. – Following a series of speeches on the House floor calling for swift passage of legislation that will restore pro-growth manufacturing tax policies, National Association of Manufacturers Managing Vice President of Policy Chris Netram released the following statement:
“House and Senate tax leaders reaching a bipartisan agreement on key manufacturing priorities is a positive development—but it is only a critical first step. Now the whole of Congress must approve legislation that restores immediate R&D expensing, a pro-growth interest deductibility standard, and full expensing for capital investments. Every day that they fail to act makes it more difficult for manufacturers to drive innovation and investment and hampers our ability to create jobs and raise wages in the United States.”
Below are select remarks from congressional members on the importance of restoring pro-growth tax policies.
Rep. Ron Estes (R-KS):
“Since the beginning of 2022, businesses have been required to spread out or amortize R&D expenses.… Since amortization took place, the growth rate of R&D spending has slowed dramatically, from 6.6% on average over the previous six years to less than one half of 1% over the last 12 months.
“The time to address R&D amortization was at the end of 2021. The next best time is now. We need to pass R&D immediate expensing for the American people and our U.S. economy.”
Rep. Kevin Hern (R-OK):
“Last year, the U.K. announced its commitment to make permanent its pro-growth policy for full expensing. The U.S. should be looking to do the same to remain competitive in the global marketplace…. This is more than just an economic issue. This is a national security issue.
“How can we expect to compete with China when it is more expensive to invest, innovate and grow here in the United States of America?”
Rep. Carol Miller (R-WV):
“It is imperative that we make the TCJA permanent. For example, if we cement the Tax Cuts and Jobs Act, we can reverse the current limitation on the deductibility of interest payments on business loans that will save over 850,000 American jobs.
“Another example is in research and development. While it was once a paid expense, R&D is now a cost that many small businesses cannot afford. China is subsidizing their R&D costs, giving them a huge advantage over the United States. Modernization and national security shouldn’t suffer because of an elapsed tax change. Our tax code should work for American workers and businesses and not against them.”