Washington, DC – Over the past year, the Ways and Means Committee has held numerous hearings on the State of the American Economy to gather input from workers, small business owners and families about the challenges they face in the Biden economy.
During a series of hearings in West Virginia, Oklahoma and Georgia, small business owners repeatedly testified against the expansion of proven pro-growth tax policies like those found in HR 7024. Tax Relief for American Families and Workers Act – Will help level the playing field for American manufacturers to compete with China, cut costs to avoid rising inflation over three years, and increase investment to create jobs for workers in their communities.
After the Ways and Means Committee passed the Tax Cuts for American Families and Workers Act by a 40-3 vote, small business owners who attended the committee’s field hearings in Peachtree City, Georgia and Yukon, Oklahoma shared their expressions of support:
David Bergmann is president of NAECO, LLC, an aircraft parts manufacturer in Georgia with fewer than fifty employees:
“Every other industrialized country provides accelerated depreciation for job-creating manufacturing machinery and R&D investments. China now allows a 200% “super rebate” to encourage R&D investment. HR 7024 would level the playing field for American manufacturers.”
Bryan Jackson, owner of Route 66, a small meat processing operation with less than twenty employees:
“I would like to thank the committee for coming to the Yukon to listen to small business owners and working to implement much-needed policies that will directly benefit small businesses, including expanding the small business expense cap and increasing the reporting threshold for businesses that use subcontracting. labor.”
Lisa Winton, CEO of Winton Machine, which employs less than 40 people:
“Manufacturing is at the heart of communities across the country, including mine. But my ability to hire, invest, and buy the equipment that enables us to compete globally has been directly harmed by the expiration of these tax provisions—provisions that spur innovation and help fund critical capital investments. If Congress wants to fulfill its commitment to small business and avoid sending our dollars to our foreign competitors, then it must pass HR 7024 to reaffirm our belief in growing manufacturing in the United States. I started my manufacturing business from my home 26 years ago, I have seen and overcome many economic challenges. The difference is that I’m facing big problems at the same time—increasing costs for raw materials and components, insurance, labor, and real estate—all of which have squeezed my margins and squeezed my cash flow. Most of my competitors are building their own machines in Europe and Asia. In order to fully maintain operations in America, I must remain competitive in the global market. I need Congress to pass this important legislation that will not only support the growth and prosperity of my company, but also the business of my vendors and customers..”
Alison Couch, founder and owner of Georgia tax and business services firm with a small staff of just seven employees, Ignite Accounting:
“I am very pleased that the Ways and Means Committee accepted my recommendation and increased the 1099 cap that has existed for decades. This will be a change reducing the paper burden of small businesses and increasing value over timebecause it is adjusted for inflation.”
The Tax Relief for American Families and Workers Act based on recommendations from small business owners to expand opportunities for innovation, create jobs, and sharpen America’s competitive advantage in key ways:
- Research and Development (R&D) costs: allowing businesses of all sizes to deduct the cost of US-based R&D investments immediately, rather than over five years—promoting American innovation and improving our competitiveness with China and the rest of the world.
- Deduction of interest: continued flexibility for businesses forced to borrow at higher interest rates to meet payroll obligations and expand operations.
- 100 percent cost: recover full and immediate costs for investments in machinery, equipment and vehicles.
- Expand the small business expense cap: increase the amount of investment that a small business can immediately write off to $1.29 million, a $1 million increase effective in 2017.
Cut the red tape for small businesses: Adjust the reporting threshold for businesses that use subcontracted labor from $600 to $1,000 and index for inflation – the first update to the threshold since the 1950s.