Chairman Hern:
National Taxpayers Union is pleased to endorse your legislation, the Renewing Investment in American Workers and Supply Chains Act. This act would provide an enormous economic boost to the United States while improving our competitive posture relative to other countries.
NTU has long been a proponent of full and immediate expensing of capital expenditures. The full expensing provision in the Tax Cuts and Jobs Act of 2017 was one of its most critical components, as it reduced the tax bias against capital investment and thereby spurred tremendous economic growth. Your bill would wisely expand the same cost recovery principle to structures by implementing a 20-year recovery period for property with neutral cost recovery, which incorporates inflation and the time-value of money into the recovery schedule.
According to the Tax Foundation, your legislation would increase GDP by more than a full percentage point, create more than 230,000 jobs, and drive wages upward. Additionally, at a time when our national debt has grown out of control, it would generate enough economic activity to produce revenues that exceed its revenue impact. According to the Tax Foundation’s model, the bill would actually generate an additional $127 billion in revenue after factoring in increased economic growth.
As Congress looks for ways to improve economic conditions, bolster American competitiveness, and help struggling workers, the Renewing Investment in American Workers and Supply Chains Act is a no-brainer. Even better, it accomplishes these three goals in a fiscally responsible manner.
We strongly urge all members to support this legislation and to work toward its swift passage.
Sincerely,