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Bonus Depreciation Coalition Letter

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Coalition
 Urges
 Congress
 to
 Make
 Bonus
 Depreciation
 Permanent
 
 

 
October
 15,
 2015
 

 
Dear
 Senator/Representative
 
 

 
In
 2008,
 a
 bipartisan
 Congress
 tried
 to
 jumpstart
 an
 ailing
 economy
 by
 implementing
 an
 
important
 pro-­‐growth
 tax
 relief
 program
 known
 as
 accelerated
 expensing,
 or
 “bonus
 
depreciation.”
 
 This
 makes
 it
 easier
 for
 companies
 to
 write
 off
 expenses
 more
 quickly
 
than
 they
 had
 previously
 been
 able
 to
 –
 letting
 the
 company
 account
 for
 all
 or
 a
 share
 
depreciation
 in
 the
 first
 year
 of
 a
 capital
 expenditure,
 rather
 than
 amortizing
 it
 over
 
several
 years.
 

 
Fundamental
 tax
 reform
 that
 includes
 full
 business
 expensing
 remains
 a
 top
 priority.
 
 
But
 for
 the
 here
 and
 now,
 this
 program
 has
 been
 a
 success.
 
 Congress
 has
 renewed
 it
 
every
 two
 years—until
 this
 year.
 

 
We
 urge
 you
 to
 support
 the
 current
 legislation,
 H.R.
 2510
 introduced
 by
 Rep.
 Pat
 Tiberi
 
(R-­‐Ohio)
 and
 S
 1660
 introduced
 by
 Sen.
 Pat
 Roberts
 (R-­‐Kansas),
 would
 make
 permanent
 
the
 extension
 of
 accelerated
 expensing.
 
 This
 legislation
 is
 an
 important
 pillar
 of
 a
 pro-­‐
growth
 tax
 reform
 agenda
 that
 will
 create
 jobs
 and
 incent
 greater
 investment
 in
 
infrastructure
 throughout
 our
 economy
 
 

 
 
Bonus
 depreciation
 encourages
 investment.
 Accelerated
 expensing
 gives
 businesses
 
the
 certainty
 they
 need
 to
 spend
 money
 on
 capital
 expenditures
 in
 an
 uncertain
 
economic
 environment.
 A
 recent
 study
 out
 of
 Harvard
 and
 the
 University
 of
 Chicago
 
found
 that
 50
 percent
 expensing
 raises
 investment
 appreciably;
 sometimes
 up
 to
 30
 
percent
 over
 a
 given
 time
 period.
 This
 makes
 sense:
 where
 normal
 depreciation
 
schedules
 allow
 the
 company
 to
 depreciate
 the
 value
 of
 an
 investment
 over
 the
 course
 
of
 the
 decade,
 this
 legislation
 allows
 companies
 to
 take
 that
 tax
 write
 off
 more
 quickly,
 
reducing
 the
 stated
 value
 of
 the
 capital
 expenditure.
 By
 guaranteeing
 that
 companies
 
can
 write
 off
 the
 value
 of
 an
 investment
 sooner,
 bonus
 depreciation
 legislation
 
encourages
 companies
 to
 get
 those
 investments
 done
 quicker.
 
 

 
 
Bonus
 depreciation
 builds
 the
 economy
 and
 creates
 jobs.
 Capital
 investment
 
contributes
 to
 economic
 growth
 both
 directly
 and
 indirectly.
 When
 companies
 spend
 
money
 on
 capital
 purchases,
 they
 not
 only
 benefit
 the
 recipient
 of
 the
 sale;
 they
 also
 
create
 jobs,
 stimulate
 local
 economies
 and
 unleash
 the
 power
 of
 the
 multiplier
 effect.
 
That
 money
 goes
 not
 just
 to
 contractors
 involved
 in
 the
 project,
 but
 is
 also
 circulated
 
throughout
 the
 local
 economy
 as
 those
 contractors
 hire
 local
 workers
 and
 
subcontractors,
 who
 then
 spend
 that
 money
 on
 local
 goods
 and
 services,
 and
 the
 cycle
 
continues.
 
 
 

 
 
Bonus
 depreciation
 moves
 toward
 fundamental
 tax
 reform.
 “Full
 business
 expensing”
 

is
 a
 cornerstone
 of
 pro-­‐growth
 tax
 reform.
 Bonus
 depreciation
 moves
 the
 current
 tax
 
system
 more
 than
 halfway
 to
 full
 business
 expensing.
 Making
 bonus
 depreciation
 
permanent
 would
 be
 a
 massive
 victory
 and
 big
 step
 forward
 towards
 meaningful
 tax
 
reform
 that
 will
 help
 American
 businesses
 compete
 in
 the
 face
 of
 an
 increasingly
 
difficult
 regulatory
 environment
 here
 at
 home,
 and
 the
 incredibly
 competitive
 global
 
marketplace.
 
 

 
 
Growing
 our
 economy
 is
 the
 only
 way
 to
 create
 jobs,
 pay
 down
 the
 debt
 and
 ensure
 our
 
nation’s
 long
 term
 financial
 security.
 
 

 
 
Permanently
 extending
 the
 benefits
 of
 bonus
 depreciation
 will
 encourage
 investment,
 
build
 the
 economy
 and
 create
 jobs.
 We
 hope
 you
 support
 permanent
 extension.
 At
 the
 
very
 least,
 it’s
 crucial
 to
 support
 S.
 1666,
 the
 2-­‐year
 extension
 of
 the
 50
 percent
 
expensing
 bill
 introduced
 by
 Sens.
 Debbie
 Stabenow
 (D-­‐Mich.)
 and
 Pat
 Roberts,
 which
 
will
 continue
 our
 nation's
 forward-­‐looking
 policies
 that
 encourage
 investment
 in
 new
 
jobs
 and
 equipment.
 
 

 
 
Sincerely,
 
 

 
David
 Williams
 
Brent
 Gardner
 
President
 
Vice
 President
 of
 Government
 Affairs
 
Taxpayers
 Protection
 Alliance
 
Americans
 for
 Prosperity
 

 

 
Seton
 Motley
 
Matthew
 Kandrach
 
President
 
Vice
 President
 
Less
 Government
 
60
 Plus
 Association
 

 

 
Karen
 Kerrigan
 
Iain
 Murray
 
President
 &
 CEO
 
Vice
 President
 
Small
 Business
 Entrepreneurship
 Council
 
Competitive
 Enterprise
 Institute
 
 
 

 

 
Jeff
 Mazzella
 
Brandon
 Arnold
 
President
 
Executive
 Vice
 President
 
Center
 for
 Individual
 Freedom
 
National
 Taxpayers
 Union
 

 

 
Andrew
 Moylan
 
Andrew
 Langer
 
Executive
 Director
 and
 Senior
 Fellow
 
President
 
R
 Street
 Institute
 
Institute
 for
 Liberty
 

 

 
Norm
 Singleton
 
Andresen
 Blom
 
Senior
 Vice
 President
 
Executive
 Director
 
Campaign
 for
 Liberty
 
 
Grassroot
 Hawaii
 Action
 

 

 

 

 

Gregory
 T.
 Angelo
 
President
 
Log
 Cabin
 Republicans
 

 
Mario
 Lopez
 
President
 
Hispanic
 Leadership
 Fund
 

 
George
 Landrith
 
President
 
Frontiers
 of
 Freedom
 

 

 

 

 

 

 

Thomas
 Schatz
 
President
 
Council
 for
 Citizens
 Against
 Government
 
Waste
 

 
Matt
 Schlapp
 
Chairman
 
American
 Conservative
 Union
 

 
Dan
 Schneider
 
Executive
 Director
 
American
 Conservative
 Union

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