As 2023 comes to a close, the specter of a number of harmful tax changes hangs over the head of the American people. Great strides have been made in tax policy since the 2017 Tax Cuts and Jobs Act, but due to arcane Congressional rules, more and more of that progress is eroding away to the great detriment of families and businesses.
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Tell Congress to address these tax issues for taxpayers everywhere - or else American families already struggling with the cost of inflation will suffer.
Learn more about the tax issues that Congress needs to tackle here:
The IRS is set to impose an onerous new threshold for transaction reporting. Whether it's reselling concert tickets, selling crafts or other items on Etsy or EBay, buying and selling on Facebook Marketplace and more - Congress lowered the dollar threshold for reporting those transactions on IRS form 1099-K from $20,000 to a mere $600. This change was scheduled to take place in 2023, but because of how onerous it is and how painful it would be for many Americans, it was delayed until 2024. The right thing to do is reform this provision entirely - and tell Congress to raise the 1099-K threshold.
Every year, Congress is faced with the sunsetting of a provision of expensing for research and development (R&D) that threatens businesses everywhere. While the right thing to do would be make this provision permanent, Congress absolutely must protect it for 2024. The United States is a global leader in research, development and innovation, and it's imperative in an increasingly competitive world to stay that way. Congress must protect full R&D expensing.
Key items of the tax code to help small businesses in the U.S. are also set to expire. Full and immediate expensing is critical to small businesses and manufacturing industries. As NTU wrote:
Congress should make full and immediate expensing for short-lived assets (i.e., 100 percent bonus depreciation) permanent, and that such a policy change would benefit small businesses as well as mid-sized and large American businesses. Data from the Joint Committee on Taxation suggests that, in 2017, businesses with less than $10 million in receipts reported $88.9 billion in bonus depreciation deductions.
The calendar is quickly dwindling before end-of-year tax changes will take place and negatively affect taxpayers, small businesses and jobs everywhere. Tell Congress: protect R&D tax credits, retain full expensing, and solve the 1099-K IRS problem now.
Additionally, Congress should begin to work toward an extension of the version of the Child Tax Credit that was created in TCJA.