2024 is opening with major budget negotiations on Capitol Hill, and the National Taxpayers Union is pushing to restore key tax provisions that will provide a major boost to both taxpayers and small businesses, and be an economic boon for everyone. NTU is leading the charge to solidify the success of the Tax Cuts and Jobs Act, and build upon that success with the following policies:
- Expand the Child Tax Credit and make sure it targets families, rather than turning it into a welfare program.
- Reestablish full deductibility of research & development (R&D) costs (Section 174).
- Restoring deductibility of depreciation and amortization costs (Section 163( j)).
- Extending the full and immediate expensing provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) (Section 168(k) of the Internal Revenue Code).
These provisions, along with an expanded child tax credit to help American families everywhere, are a part of the Tax Relief for Working Families and Workers Act. TRAFWA passed the House of Representatives on January 31, 2024, and is now up for consideration in the Senate.
Tell your Senators to support TRAFWA, which provides important tax relief for families and businesses everywhere.
Read more on these key provisions:
NTU's coalition letter to leaders on Capitol Hill is below:
| The Honorable Chuck Schumer Majority Leader U.S. Senate Washington, DC 20510 | The Honorable Mitch McConnell Minority Leader U.S. Senate Washington, DC 20510 |
| The Honorable Mike Johnson Speaker U.S. House of Representatives Washington, DC 20515 | The Honorable Hakeem Jeffries Minority Leader U.S. House of Representatives Washington, DC 20515 |
(pdf)
Dear Majority Leader Schumer, Speaker Johnson, Minority Leader McConnell and Minority Leader Jeffries,
On behalf of the undersigned organizations who represent the interests of taxpayers, consumers and families across the country, we urge you to quickly enact pro-growth tax legislation in the new year. 2023 was challenging for many Americans due to persistent inflation, rising interest rates, and an uncertain economic climate. Congress should immediately work to improve economic conditions with a fiscally responsible, broad-based tax package that encourages more investment in the American economy. Such policies are far preferable to targeted provisions that seek to micromanage the economy by letting the government pick winners and losers.
Specifically, we urge you to pass fiscally responsible tax legislation that includes the following:
Extending the full and immediate expensing provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) (Section 168(k) of the Internal Revenue Code). Full expensing, or bonus depreciation, is critically important to economic growth because it provides an immediate tax benefit for investing in certain short-lived assets that can increase productivity and wages. Unfortunately, it began phasing out in 2023 and, if Congress fails to act, will completely phase out by 2027.
Reestablishing full deductibility of research & development (R&D) costs (Section 174). As of 2022, businesses can no longer fully and immediately deduct their R&D investments. Instead, they must amortize these costs over the course of five years. This tax structure undermines American competitiveness and innovation. Congress should quickly restore R&D expensing.
Restoring deductibility of depreciation and amortization costs (Section 163(j)). Section 163(j) of the Internal Revenue Code allows businesses to deduct interest up to a certain limit, which includes 30 percent of adjusted taxable income (ATI). Since 2022, the amount of interest deductions that businesses can take has been limited to 30 percent of earnings before interest and taxes (EBIT) rather than earnings before interest, taxes, depreciation, and amortization (EBITDA), which was the standard during the initial years of TCJA. Restoring this tax provision would be a huge boon to American manufacturers.
Congress should start the new year with legislation that helps get our economy back on track. We strongly urge you to work quickly to include these three provisions in an early-year tax package.
Sincerely,
Pete Sepp | Saul Anuzis 60 Plus Association | Stephani Smith |
| Dick Patten American Business Defense Council | Phil Kerpen American Commitment | Steve Pociask |
| Grover Norquist Americans for Tax Reform | Bob Carlstrom AMAC Action | J.R. Toedtman |
| Maureen Blum Catholics Count | Ryan Ellis Center for a Free Economy | Jeff Mazzella Center for Individual Freedom |
| Daniel Mitchell Center for Freedom and Prosperity | John Hinderaker Center of the American Experiment | Tom Schatz Council for Citizens Against Government Waste |
| Scott Parkinson Club for Growth | Iain Murray Competitive Enterprise Institute | James Edwards Conservatives for Property Rights |
| Matthew Kandrach Consumer Action for a Strong Economy | Palmer Schoening Family Business Coalition | Jason Pye FreedomWorks |
| George Landrith Frontiers of Freedom | Camberon Sholty Heartland Impact | Mario H. Lopez Hispanic Leadership Fund |
| Carrie Lukas Independent Women's Forum | Andrew Langer Institute for Liberty | Sal Nuzzo James Madison Institute |
| Seton Motley Less Government | Charles Sauer Market Institute | Chrostpher Summers Maryland Public Policy Institute |
| Wendy Damron Palmetto Promise | Philip Rossetti R Street Institute | Mike Stenhouse Rhode Island Center for Freedom and Prosperity |
| Karen Kerrigan Small Business and Entrepreneurship Council | Aiden Buzzetti The Bull Moose Project | David Williams Taxpayers Protection Alliance |
| Jon Decker Viante Foundation | Casey Given Young Voices | Patrick Purtill Faith and Freedom Coalition |
| Victor Riches Goldwater Institute | ||