WASHINGTON, D.C. – In an interview with CNBC Squawk Box host, Becky Quick, Ways and Means Committee Chairman Jason Smith (MO-08)highlighted how the Tax Relief for American Families and Workers Act will provide much-needed relief to working Americans who have struggled for years with rising prices, give small businesses and manufacturers in the United States a leg up by boosting innovation here at home, and sharpen our competitive edge with China.
Click here to watch the full interview.
Small Business Provisions Will Generate Billions in Investment and Support Millions of Jobs:
Chairman Smith: “This bill has pro-growth, pro-worker, pro-American tax policies that support families and small businesses. It sharpens our competitive edge with China, and it boosts innovation right here in the United States. There’s three very important business provisions that have expired from Trump’s tax cuts of 2017. One is research and development… If we pass this provision, it will help invest more than $70 billion into the economy, affecting 21 million jobs. When you look at the 100% expensing provision, it started to phase out. It was 80% last year. It’s 60% this year. It’ll go to 40% next year. We’re making it 100%. Once again, that will create more than $400 billion in investment and create 73,000 jobs.
Third-Party Analyses CONFIRMED:
- Research and Development (R&D) investment incentives will…
- Create over $70 billion in new R&D investment in the United States.
- Support 2 million direct R&D jobs and over 21 million total jobs – particularly in U.S. manufacturing.
- Interest Deductibility will…
- Create 867,000 new jobs.
- Generate $58 billion in additional take-home pay for American workers.
- 100% Immediate Expensing will…
- Increase investment by $400 billion
- Create 73,000 new jobs.
Child Tax Credit Reforms Are Proven, Conservative, and Pro-Family Policy to Help Americans Crushed by Inflation:
Chairman Smith: “Republicans started the tax credit in the 90s. We doubled it in Trump’s tax cuts in 2017. And what we’re doing here is enhancing it; we’re indexing it for inflation. For families who have been crushed by the cost of goods going up, we’re making sure that there’s no longer a penalty for families who have multiple children, things that are pro-family, pro-growth. That’s the policies within this bill.”
The Tax Relief for American Families and Workers Act reforms the CTC to boost work incentives, eliminates the penalty for larger families, and indexes the credit to inflation to help families struggling in the Biden economy, all while maintaining the structure of the 2017 GOP tax law that safeguards against claims made by illegal immigrants and ineligible persons. This protection makes the Child Tax Credit one of the few tax code provisions with such a strong requirement.
Correcting the Record: Retroactively Applying R&D, Interest Deductibility, and 100% Immediate Expensing:
Becky Quick: “Part of the problem that’s been pointed out is that something like $110 billion in the revenue cost of this is applied retroactively to deductions that were made for 2022 and 2023. That is not going to put more incentives to investing more, because that’s already coming past.”
Fact Check: Retroactively applying the small business provisions immediately frees up millions of dollars in capital for small businesses nationwide to invest in themselves, create jobs, grow workers’ wages and spur innovation nationwide.