May 17, 2017
CRANE Coalition: Thune INVEST Act Proposal Recognizes Cost Recovery as Crucial Component of Tax Reform to Drive Economic Growth
Kevin Dempsey, Senior Vice President for Public Policy at the American Iron and Steel Institute and spokesman for the CRANE Coalition, issued the following statement about a new tax reform proposal by Sen. John Thune (R-SD) called the Investment in New Ventures and Economic Success Today (INVEST) Act:
“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.
“This proposal demonstrates how the emphasis in tax reform is refocusing on fiscally responsible proposals that actually generate growth and investment rather than proposals to use cuts in cost recovery to try to pay for arbitrary policy targets.
“Decades of bipartisan policy work, and study after study, have shown that rapid cost recovery, even if short of full expensing, supports strong business investment which is the main driver of economic growth and technological advancement. Cutting or eliminating rapid capital cost recovery has the opposite effect, reducing investment by raising the cost of capital as well as lighting the fuse on a fiscal bomb by triggering an unsustainable, short-term burst of revenue.
“The CRANE coalition looks forward to working with Senator Thune and other Members of Congress on both sides of the aisle who share a goal of using tax reform to promote capital investment, job creation and economic growth here at home and recognize the vital role rapid capital cost recovery has to play in achieving it.”
The Cost Recovery Advances the Nation’s Economy (CRANE) Coalition is made up of American companies and associations focused on preserving accelerated depreciation to provide the capital needed to continue driving America’s economic growth and job creation here at home.