Last month’s passage of the Tax Relief for American Families and Workers Act in the U.S. House of Representatives has given the U.S. Senate a prime opportunity to deliver real relief to American families and small businesses this tax season, writes David Williams, President of the Taxpayers Protection Alliance in an op-ed for Real Clear Markets.

Restoring research and development (R&D) expensing helps American companies compete against foreign countries, like China:

“Until 2022, if a business invested money into (R&D), they could deduct the full amount from their taxable income for that year, since the money was not effectively used as income, but re-invested into the company. As of 2022, however, those costs had to be spread out over five years. This increased American businesses’ tax bill and made it a riskier proposition to invest. This tax package is a worthy response to repeated calls for help from America’s business community…This will free up capital and allow small businesses that are highly leveraged to make investments in their future. This includes adding jobs, as the salaries of those workers helping to develop products are generally categorized under R&D expenditures. Simply put, high-skilled jobs will start in the United States and stay there.”

The Tax Relief for American Families and Workers Act will give families relief from inflation:

“Research by the Tax Foundation shows that the package does not exacerbate inflation, despite dubious claims to the contrary. After 2025, tax revenues actually increase through 2033. Providing relief at a time when wages have not kept pace with inflation is just as critical to Americans as any other issue the Senate is set to debate soon… This tax deal makes America more competitive and builds up the economy to weather this current inflationary climate.”

The Senate has an opportunity to meet the urgency of the moment and deliver critical tax relief to families and businesses:

“The longer the Senate waits to vote on this tax package, the more likely the window to fix the damage this tax season goes by. This legislation brings solid wins to the American public and a much-needed political wins to both sides of the aisle. The House rightly saw the immediate need to restore immediate and full R&D expensing, reinstate one hundred percent bonus depreciation, and provide relief on certain business-interest deductions, like machinery. These provisions make it easier for businesses to invest in themselves and the American economy, minimizing that risk…Leaders in the Senate have been handed a massive opportunity by the House. Further, this is a chance for a bipartisan win – something that has been sorely lacking as of late. There are few “no-brainers” in Washington. However, this is as close as the Senate has come to deliver a key victory for taxpayers. They should take it.”

Read the op-ed here.