September 20, 2017
Senate Finance Committee Hearing on Business Tax Reform Highlights Critical Role of Cost Recovery in Supporting Domestic Investment, Job Creation
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 yesterday’s hearing in the Senate Finance Committee on potential elements of business tax reform:
“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.
“The Committee also heard how curtailing rapid cost recovery can also undercut the economic growth that is tax reform’s ultimate purpose. Trying to raise revenue by slowing depreciation schedules can actually increase the cost of capital. Making it more expensive for companies to invest makes it less likely that they will – and less new investment means fewer jobs in manufacturing and other capital-intensive sectors.
“The CRANE coalition looks forward to working with members of both parties in the Senate and the House, as well as with the Trump Administration, to ensure American business can continue to use rapid cost recovery for new domestic investment that grows our economy and creates jobs.”
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.