NAM Urges Congress To Make Small-Business Tax Breaks Permanent

NAM Urges Congress To Make Small-Business Tax Breaks Permanent

The Business Journals’ (12/1, Hoover) Washington bureau predicts lawmakers this month will raise, as they did in December 2014, the limit under current law for small businesses to take advantage of a tax break known as Section 179 expensing. However, “business groups want Congress to end the guessing game” on whether that and other tax provisions “will be available in a given year by making these tax breaks permanent.” The Business Journals quotes NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman as urging lawmakers in a letter to make the R&D credit permanent because it “spurs the investment … that leads to new product development and increased productivity.” Her letter “also touted the benefits of now-expired tax breaks such as bonus depreciation … and a ‘look-through’ rule” that lets American manufacturers “‘redeploy foreign earnings from active overseas business operations without triggering immediate U.S. tax,’” relieving those companies of a “competitive disadvantage” globally. Coleman added that by approving at least “a multiyear extension of these provisions,” Congress would provide “a critical bridge of predictability until comprehensive tax reform is enacted.”

Politico (11/30, Becker), in its “Morning Tax” roundup, asserts that business groups are seeking “fast” action by Congress on the provisions, “and they want their priorities permanent.” Politico quotes the NAM as writing, “Making permanent the pro-growth tax provisions important to manufacturers would eliminate the cycle of uncertainty associated with temporary tax extenders, bringing confidence back into investment decisions that fuel economic growth.”

In the association’s Shopfloor (12/1) blog, Director of Tax Policy Christina Crooks explains that due to congressional inaction on the issue so far, “the NAM is taking the fight to social media and is seeking [the public’s] help to push for a permanent or multi-year extension of the temporary tax provisions today, Tax Relief Tuesday.” She asks readers to contact their elected representatives in Washington and urge them to extend the expired provisions, either permanently or on “a multi-year basis.” Crooks also invites supporters to “join the conversation on social media by using #TaxReliefTuesday to urge Congress to act on tax extenders to promote #JobsandGrowth.”