CRANE News

Watch this page for news about the CRANE coalition and about developments on comprehensive tax reform that encourage investment, job creation and economic growth here at home.

November 16, 2017

CRANE Applauds House for Passing Tax Reform Bill That Preserves Accelerated Depreciation, Provides Expensing of Capital Costs

“CRANE applauds the House for voting to preserve accelerated depreciation and to provide for five years of expensing of capital costs to increase domestic investment.  We look forward to continued Senate action to move this important legislation forward.”

 

November 10, 2017

CRANE: Senate Tax Reform Bill Underscores Preservation of Accelerated Depreciation and Expansion of Rapid Cost Recovery to Grow Economy and Create Jobs

“The Senate is to be commended for joining the House in introducing a tax reform bill that preserves the Modified Accelerated Cost Recovery System (MACRS) to grow the economy and create jobs through increased domestic investment by keeping the cost of capital lower. Both Houses also have now taken the positive step of proposing full expensing of machinery and equipment for five years."  

 

November 2, 2017

CRANE: House Tax Reform Bill Pursues Economic Growth & Job Creation by Preserving Accelerated Depreciation and Expanding Rapid Cost Recovery

“Along with the sharply reduced corporate tax rate, the continuation of MACRS and the institution of expensing will help ensure that U.S. businesses can compete at home and abroad with businesses from anywhere in the world."

    

September 27, 2017

GOP Tax Reform Framework Embraces Cost Recovery To Promote Domestic Investment and Create Jobs

“By preserving accelerated depreciation and extending 100% bonus depreciation for at least five years, this framework signals a clear desire to keep the cost of capital lower to support greater investment at home and the jobs that will come with it.

 

September 20, 2017

CRANE: Senate Finance Committee Hearing on Business Tax Reform Highlights Critical Role of Cost Recovery in Supporting Domestic Investment, Job Creation

“Yesterday’s Senate Finance Hearing on business tax reform brought an important focus to the role that cost recovery plays in supporting domestic investment and job creation. In his opening statement Chairman Hatch underscored the need for a tax reform approach that frees up capital for new investment, which policies like accelerated depreciation and bonus depreciation do by holding down the cost of that capital.

 

July 27, 2017

CRANE Coalition: Joint Statement on Tax Reform Highlights Cost Recovery To Drive Economic Growth

“The shared tax reform principles of the House, Senate, Treasury Department and White House demonstrate the critical role that rapid cost recovery plays in promoting domestic investment. This public commitment also highlights the recognition that reducing or eliminating this powerful pro-growth tool, as some had previously proposed, would have been a short-sighted and ineffective effort to raise revenue.

 

July 17, 2017

CRANE Submits Comments to the Senate Finance Committee on Preserving and Enhancing Accelerated Depreciation in Federal Tax Reform.

"Revenue gained from the repeal of accelerated depreciation does not persist and would lead to increases in the federal budget deficit just at the time of rising entitlement costs of the baby boom generation.   Additionally, the repeal of accelerated depreciation would tilt the tax system away from favoring investment to favoring consumption, with adverse consequences for future economic growth."

 

June 16, 2017

Committee For A Responsible Budget Tax Reform Analysis Includes Irresponsible Revenue Proposals

“Experts agree that repealing or slowing accelerated depreciation to pay for tax reform would produce a temporary, unsustainable boost in revenue, leading to budget shortfalls down the road – budget shortfalls that would require new tax increases to address. Capital-intensive businesses in the U.S. could end up with neither accelerated depreciation nor more-competitive tax rates."

 

May 17, 2017

CRANE Coalition: Thune INVEST Act Proposal Recognizes Cost Recovery as Crucial Component of Tax Reform to Drive Economic Growth

“Senator Thune’s INVEST Act makes an important contribution to the tax reform debate by recognizing rapid capital cost recovery as a crucial component of the ultimate goal of any new tax policy: driving economic growth and investment here at home."

 

April 20, 2017

FT: US requires a tax policy that boosts investment (subscription required)

"When considering which road to take on tax reform, the US should choose the one that strengthens, not weakens, policies like accelerated depreciation that have been proven to support domestic investment."

https://www.ft.com/content/37ed7f84-25be-11e7-8691-d5f7e0cd0a16

 

January 12, 2017

Bloomberg BNA: Full expensing forever? How Advocates Won in GOP Tax Plan

"'I think the real focus [of tax reform] is on economic growth and how we jump-start the economy,' said Kevin Dempsey, spokesman for a...group called the CRANE Coalition, shorthand for Cost Recovery Advances the Nation's Economy...Slowing depreciation would increase the cost of capital by 8 percent across all industries, according to studies from the CRANE coalition."

https://www.bna.com/full-expensing-forever-n73014449710/

 

November 25, 2016

Bloomberg BNA: Depreciation Deductions Rise, but Mining Falters: IRS Data (subscription required)

"The House blueprint signaled strong support for preserving accelerated depreciation and continuing to speed up the pace of capital cost recovery to help meet that challenge," Kevin Dempsey, a spokesman for the Cost Recovery Advances the Nation's Economy (CRANE) Coalition, said in a Nov. 23 email. "The blueprint recognized that the previous proposals to cut accelerated depreciation to pay for other tax reform proposals amounted to a short-term fix that would have reduced incentives to invest in manufacturing here at home and led to burgeoning budget deficits down the road...The CRANE coalition advocates retaining depreciation measures in the tax code."

 

October 21, 2016

Real Clear Markets: The Anniversary of the '86 Tax Reform Is An Opportunity to Highlight Tax Priorities

"The 1986 tax reform act represented a political, ideological, and regional compromise to end tax shelters, close perceived loopholes, take low earners off the income tax rolls, cut back deductions and credits, and reduce tax rates. An important part of that compromise was the retention of accelerated depreciation for businesses seeking to invest in new equipment and machinery at home."

http://www.realclearmarkets.com/articles/2016/10/21/the_anniversary_of_the_86_tax_reform_is_an_opportunity_to_highlight_tax_priorities_102394.html

 

October 20, 2016

Buffalo News: Tax Reform Should Not Overturn Depreciation Policy

"Tax reform has been on the agenda for years, with the 1986 law representing the last major successful reform. The global economic landscape has changed dramatically in the last 30 years, and our national tax code certainly needs to be updated in kind with these developments. However, it is vital that lawmakers uphold policies that have proven to have a positive impact. Accelerated depreciation protects jobs and makes American businesses more competitive in international markets."

http://buffalonews.com/2016/10/20/another-voice-tax-reform-not-overturn-depreciation-policy/

 

September 21, 2016

Pittsburgh Business Times: Cost Recovery Critical to Pa. Manufacturing (subscription required)

"The tax reform debate in Washington will have a big impact on local manufacturing jobs, including in the steel industry. In Congress, lawmakers have been debating tax reform for years, but with numerous Congressional hearings and proposals this year it seems we are poised for real change soon. Maintaining existing policies that work should be a priority in the tax reform process. Diminishing or eliminating accelerated depreciation would directly impact businesses looking to invest in more efficient technology."

http://www.bizjournals.com/pittsburgh/news/2016/09/20/kevin-dempsey-cost-recovery-critical-to-pa.html

 

June 24, 2016

Ways & Means Chairman Kevin Brady: The GOP Plan for Tax Sanity (subscription required)

"Full and immediate expensing is widely recognized as one of the most pro-growth tax policies around. The ability to immediately deduct the costs of capital investments will help employers improve worker productivity and output—which grows Main Street jobs. And with these savings, businesses across the country will have more freedom to grow, hire new workers and increase wages."

https://waysandmeans.house.gov/icymi-chairman-brady-wsj-gop-plan-tax-sanity/

 

June 6, 2016

Wall Street Journal: Hillary Clinton Hasn't Tipped Her Hand on Corporate Tax Rate

“'If you eliminate [accelerated depreciation] to pay for the rate cut, you’re actually undermining the central goal of tax reform, which is to promote that economic growth and job creation,' said Kevin Dempsey, senior vice president for public policy at the American Iron and Steel Institute, who helps lead [CRANE] a coalition of companies and trade groups that favor accelerated capital writeoffs."

http://www.wsj.com/articles/hillary-clinton-hasnt-tipped-her-hand-on-corporate-tax-rate-1465244237

 

March 31, 2016

Politico Pro: Camp Tax Plan Becoming Distant Memory for House Tax Writers (subscription required)

"So many Republicans are eager to drop [Camp's] proposal to finance a reduction in the corporate tax rate by stretching out investment write-offs for businesses, a proposal that was anathema to many conservative Republicans. Many now want to do the opposite, by allowing companies to immediately "expense" their investments."

https://www.politicopro.com/tax/story/2016/03/camp-tax-plan-becoming-distant-memory-for-house-tax-writers-104390?platform=hootsuite

 

February 22, 2016

Tax Notes: Square Pegs, Round Holes, And Federal Tax Reform (subscription required)

"The tax code permits typical small businesses to immediately write off the cost of new business equipment — a major tax savings and a major accounting simplification. In fact, Congress last December permanentlyextendedthe$500,000write-offallowance of section 179."

http://www.taxnotes.com/tax-notes-today/tax-reform/square-pegs-round-holes-and-federal-tax-reform/2016/02/24/18247841?platform=hootsuite

 

January 21, 2016

The Hill: GOP Eyes Election-Year Tax Deal

"'This is the slowest economic recovery in a half a century,' [Ways & Means Chairman Brady] said. 'We shouldn’t miss the opportunity to lower the tax gates to allow American profits...to be invested in jobs, in research and in buildings,' he said."

http://thehill.com/policy/finance/266531-gop-eyes-election-year-tax-deal

 

October 7, 2015

BloombergBNA Daily Tax Report: Don't Sacrifice Cost Recovery for Rate Reduction, Study Says (subscription required)

"Eliminating depreciation to lower U.S. tax rates would hurt the economy, according to a new study on cost recovery...'As your cost of capital goes up, the amount of investment you can do goes down,' said Kevin Dempsey, senior vice president for public policy at the American Iron and Steel Institute, a member of the CRANE Coalition. 'Reductions in business investment reduces economic growth.'”

http://news.bna.com/dtln/DTLNWB/split_display.adp?fedfid=76919846&vname=dtrnot&jd=a0h3r0b0h3&split=0

 

June 21, 2015

Glenn Hubbard & Kevin Warsh: How the U.S. Can Return to 4% Growth (subscription required)

"It means encouraging real capital investment to drive higher levels of productivity growth. It means resetting long-run expectations of potential for every individual, household and business. It means making the United States the best place in the world in which to invest and work.  Examples? Fundamental tax reform that is directed at increasing the incentives for work and driving investment in productive assets."

http://www.wsj.com/articles/how-the-u-s-can-return-to-4-growth-1434922625?KEYWORDS=warsh&cb=logged0.26407645856877293

 

April 21, 2015

Tax Analysts: CRANE Coalition Urges Retention of Accelerated Depreciation (subscription required)

"Lawmakers should reject proposals to repeal accelerated depreciation because it would lead to deficit increases, harm the economy by causing the tax system to favor consumption over investment, and discourage business investment, the CRANE Coalition said in an April 14 letter to the Senate Finance Committee."

http://services.taxanalysts.com/taxbase/tbnews.nsf/Go?OpenAgent&2015+TNT+76-29

 

April 20, 2015

Washington Post Wonkblog: Why Tax Reform is Going to Be Really Hard

"A few days ago, a collection of companies and industry groups called the CRANE Coalition released an economic study arguing against elimination of accelerated depreciation. The point of the study is that ending accelerated depreciation would save money in the short term, but not in the long run, because companies would still write off the full declining value of their assets, just over a longer period of time."

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/04/20/why-tax-reform-is-going-to-be-really-hard/

 

April 15, 2015

Tax Analysts: Ending Accelerated Depreciation Would Cut Revenue, Report Says (subscription required)

"Ending accelerated depreciation would be a front-loaded revenue measure that would result in deficit increases beyond the 10-year budget window and reduce investment incentives, according to an April report from Quantria Strategies prepared for the CRANE Coalition."

http://services.taxanalysts.com/taxbase/tbnews.nsf/Go?OpenAgent&2015+TNT+72-37

 

April 15, 2015

American Metal Market (AMM):  Repeal of Special Tax Rules Harmful in Long Term (subscription required)

“Removing accelerated depreciation tax rules merely "front-loads" extra revenue but doesn’t alter the total taxable income deducted by companies under the plan in the long run, the Luray, Va.-based Quantria Strategies LLC study found…In the meantime, capital-intensive businesses could lose the benefits of depreciation rules, which could chill their investments in the United States, according to the study.”

http://www.amm.com/Article/3445131/Repeal-of-special-tax-rules-harmful-in-long-term.html

 

March 19, 2015

The Hill: Industries Unite in Defense of Tax Break

“'Accelerated depreciation is vital to help our industries drive the country’s economic growth,'” said [American Iron & Steel Institute Vice President, Kevin] Dempsey, who noted the coalition's membership spans the tech, manufacturing and energy sectors."

http://thehill.com/policy/finance/236342-industries-unite-in-defense-of-tax-break

 

March 19, 2015

CRANE: Industries Driving Economic Growth Unite to Support Accelerated Depreciation in Comprehensive Tax Reform

"Leading trade associations and companies representing the sectors driving America’s economic growth and job creation – manufacturing, transportation, energy and communications -- have formed a new coalition to urge policymakers to continue three decades of bipartisan, pro-investment tax policy by preserving accelerated depreciation within comprehensive tax reform."

http://tinyurl.com/CRANEcoalition