Under threat of a veto from President Obama, the U.S. House of Representatives today passed bipartisan legislation which will permanently make it easier for local businesses to deduct from their taxes the costs of new equipment, software and buildings.
This bipartisan permanent tax cut, estimated by the Tax Foundation to create 212,000 new jobs, was supported on the floor by 34 Democrats who broke with the President and voted in favor of the bill.
“In this disappointing economic recovery, why would the President fight our local businesses? Why does he seem to prefer that Americans get unemployment checks instead of paychecks?” asked U.S. Congressman Kevin Brady of Texas, a senior Republican on the House Ways and Means Committee and proponent of pro-growth tax reform. “Business investment is the missing ingredient in this economic recovery. Making it more affordable for local businesses to buy new equipment and technology – and the certainty that comes with permanence – will create jobs, spur the economy and help us balance the federal budget.”
The tax-writing Ways and Means Committee has successfully passed eleven permanent tax cut proposals out of committee this year which will make temporary tax provisions into a permanent part of the tax code. Previously, bonus depreciation has been extended, expanded or increased seven times as a temporary measure over the past decade with the support of several leading Democrats in the House, and signed into law three times by the President.
*Video: Congressman Kevin Brady speaks on the House floor in favor of making bonus depreciation permanent – http://youtu.be/cAaWTeJbKAk
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