THE ACCELERATOR for March 22, 2017
News for Driving Economic Growth
REJECTED TAX REFORM IDEAS BACK FROM THE DEAD?
The tax reform measure introduced in 2014 by former Ways & Means Chairman Dave Camp is finding new life this year, after failing to advance in the House in 2014. Staff on the Senate Finance Committee are rifling through that bill and other old tax reform plans in an attempt to find palatable ways to offset the cost of tax-rate reductions. Reconsideration of the Camp measure could implicate proposals meant to pare back accelerated depreciation and other cost-recovery features of the tax code.
DID YOU KNOW?
The Senate Finance Committee's Business Income Tax Bipartisan Working Group published a report in July of 2015 focusing on business tax issues in tax reform. Among their findings was that "overall, the economic literature on tax policy and investment suggests that provisions like accelerated depreciation and expensing have a noticeable impact on investment."
ACA REPEAL VOTE NEAR - WHAT IT MEANS FOR TAX REFORM
With the House voting on ACA repeal Thursday, tax reform could soon be on the Congressional agenda. After a final version of the ACA repeal bill clears Congress and is signed by the President, next step before tax reform is likely to be passage of a Congressional budget resolution for fiscal year 2018. Passage of a budget resolution will set broad parameters for tax and spending bills and will let the tax reform debate formally begin. White House spokesman Sean Spicer expresses optimism that tax reform will begin by late spring.
THE ACCELERATOR is the voice of the CRANE Coalition – Cost Recovery Advances the Nation’s Economy. CRANE is made up of American companies and associations focused on preserving a robust system of cost recovery in the tax code to ensure that businesses have the capital needed to continue driving economic growth and job creation here at home. CRANE has sponsored research on the economics and budgetary aspects of cutbacks in cost recovery. As Congress and the administration endeavor to reform the U.S. tax code in the coming months, CRANE will continue to urge the preservation and enhancement of accelerated depreciation. Follow us on Twitter.