Every day, honest hardworking men and women are struggling. Far too many families haven’t seen a pay raise in years, and many have lost hope and stopped looking for work entirely. H.R. 4, the Jobs For America Act, will strengthen the economy by creating more jobs with higher take-home pay.
The House has already passed dozens of bipartisan solutions that will break down burdensome regulations and promote policies that allow businesses big and small to do what they do best – grow, innovate and hire new workers.
The bill we have before us today, the Jobs for America Act, includes provisions that have strong bipartisan support in both the House and Senate.
The research and development credit, which has been around for over thirty years, is a proven way to incentivize U.S. companies to innovate, create new products, and invest in the U.S. The United States is also the only country that allows important pieces of its tax code to expire on a regular basis. Businesses cannot grow and invest when the tax code is riddled with instability and uncertainty.
Making the R&D tax credit permanent also supports good-paying jobs. According to the National Association of Manufacturers, 70 percent of R&D credit dollars are used to pay salaries of R&D workers. And, the non-partisan Joint Committee on Taxation estimates that making the R&D credit permanent could increase the amount of research and development American companies undertake by up to 10 percent. That translates into more workers, higher wages and increased innovation here in the U.S.
This bill would also make permanent bonus depreciation and Section 179 expensing at higher levels, allowing businesses, farmers and ranchers to plan for the future and expand their business. The result: more jobs and higher wages for hardworking Americans. Tax Foundation analysis found that permanent bonus depreciation would add $182 billion to the economy, increase wages by one percent, and create 212,000 jobs.
Additionally, the bill would make permanent several expired tax provisions that benefit S corporations – a popular and important business structure used by millions of small businesses across the country. This commonsense effort will give small businesses some much needed relief from the burdens of the tax code, allowing them to make new investments and create new jobs.
This bill would also repeal some of the job-killing provisions in the health care law. The current “30-hour rule” in the Affordable Care Act’s employer mandate results in fewer jobs, reduced hours and less opportunity for many Americans. By changing the definition of full-time work, ObamaCare places an unprecedented government regulation on workers. As a direct result, Americans across the country are having their hours cut at work and seeing smaller paychecks. At a time when the cost of groceries, gas and health care keep increasing, lower paychecks are simply unacceptable.
Worst of all, the law hits lower-income Americans the hardest: 2.6 million workers with a median income under $30,000 are at risk for losing jobs or hours; 89 percent of workers impacted by the rule do not have college degrees, 63 percent of which are women; and, over half have a high school diploma or less. Simply restoring the definition of full-time work to 40 hours will ensure that the hardest working Americans do not see their hours and wages cut as a result of the health care law. And, this bill also ensures that small businesses that hire veterans returning from service overseas who already have coverage through TRICARE or the VA aren’t counted under the employer mandate.
And, we repeal the onerous medical device tax, which is stifling medical innovation and hurting jobs. According to a survey by AdvaMed, the medical device tax has already resulted in 14,000 jobs lost in the industry and prevented 19,000 jobs from being created. This tax is contributing to lackluster job creation and hampering medical innovation. We have strong bipartisan support for repeal of this tax, and to repeal it before even more detrimental harm is done to the workforce and medical community.
These are only a few among a long list of policies that will ultimately get Americans back to work and increase their quality of living. With better jobs, higher take home pay and a stronger economy, we can offer a brighter future for our youth and ease the everyday burdens felt by individuals nationwide. It’s time to create an America that works.