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Providing Tax Certainty: Our Work Continues . . .

September 16, 2015

Under our current (broken) tax system, Congress lurches from year to year by renewing so-called “tax extenders.” This annual practice creates uncertainty and confusion, which takes a toll on everyday Americans and costs jobs. That’s why throughout this year the House has sought to provide more certainty by making many of these “extenders” permanent law. No more year-end drama. No more writing tax law one year at a time. Just the predictability that families and employers deserve. 

Tomorrow the Ways and Means Committee will continue this effort by taking up another set of bills to make certain “temporary” tax provisions permanent. In doing this we help hardworking Americans—from teachers to restaurant and shop owners—by removing the needless cloud of uncertainty, which will make their lives easier.  

What are the bills? The committee plans to mark up the following tax-related bills tomorrow:

  • H.R. 2940, the Educator Tax Relief Act of 2015, sponsored by Rep. Dave Reichert (R-WA), would make permanent the above-the-line deduction for classroom expenses of schoolteachers. Many schoolteachers pay for supplies and learning tools for their students out of their own pocket. This deduction will help teachers to afford the basic materials they need to inspire and develop young minds. 
  • H.R. 765, the Restaurant and Retail Jobs and Growth Act, sponsored by Rep. Mike Kelly (R-PA), would make permanent the 15-year depreciation schedule for leasehold improvements, restaurant improvements and new construction, and retail improvements. The 39-year depreciation timeline under permanent law—designed for larger commercial real estate—just doesn’t make sense for small retail shops and restaurants that rarely stay that long in one location. That’s why on multiple occasions Congress has shortened it to 15 years. This legislation would give thousands of small businesses the tax certainty they need to invest and expand. 
  • H.R. 2510, A bill to amend the Internal Revenue Code of 1986 to modify and make permanent bonus depreciation, sponsored by Rep. Pat Tiberi (R-OH), would make 50-percent bonus depreciation permanent. This will provide much-needed certainty for American businesses and job creators so they can make vital investments and create more opportunity in the economy. 
  • H.R. 961, A bill to amend the Internal Revenue Code of 1986 to permanently extend the subpart F exemption for active financing income, sponsored by Rep. Tiberi. This legislation would level the playing field for U.S. companies to compete against foreign competitors that are not subject to an onerous worldwide tax system. 
  • H.R. 1430, the Permanent CFC Look-Through Act of 2015, sponsored by Rep. Boustany (R-LA). This legislation would help U.S. companies operating internationally to function in an efficient manner without worrying about negative U.S. tax consequences. 

It’s clear that we need to fix our broken tax system from top to bottom—for families, individuals, and businesses. In the meantime, it’s important to remove needless uncertainty so businesses can focus on creating jobs and workers have some tax predictability moving forward.