Nov 18 2014
Rep. Jim Renacci (OH-16) today urged immediate action on tax extenders in order to provide businesses with the certainty and predictability they need to hire and expand. The House of Representatives has already passed several permanent extensions of important provisions, including the New Markets Tax Credit, Bonus Depreciation, Research and Development Tax Credit, and Enhanced Deduction for Charitable Contributions of Food, among others.
“As a business owner for nearly 30 years, I can attest that uncertainty created in Washington makes it difficult for a business to grow, create jobs, and plan from one year to the next,” said Renacci. “One of the best examples of Washington-born unpredictability is the frequent expiration and extension of long-established and highly utilized tax policies. Families and employers are uncertain of which tax benefits they will be able to utilize from year to year, making it impossible to plan for what they will owe or how much they can invest.”
More than 500 organizations in Ohio and across the country, including the Ohio Restaurant Association, Ohio Cast Metals Association, Ohio Council of Retail Merchants, and Ohio Propane Gas Association, today sent a letter asking Congress to extend, enhance, or make permanent the expired and expiring tax provisions.
“About three in 10 restaurant operators surveyed by the National Restaurant Association report that they have put expansion or improvement projects on hold because they’re uncertain whether Congress will extend the 15-year depreciation schedule for spending on construction and improvements,” said Richard Mason, director of government affairs at the Ohio Restaurant Association. “If restaurants proceed with the projects they have put on hold, the result would be a $23 billion overall economic impact as this construction spending ripples across other industries; and 200,000 new jobs across all U.S. industries. It is critical that Congress acts now to bring the certainty businesses need to expand and create jobs.”
Bob Stallman, president of the American Farm Bureau Federation, added, “Failure to extend these tax provisions will result in a tax increase for our nation's farm and ranch businesses. Acting promptly on tax extenders in the Lame Duck will provide important predictability necessary for economic growth in the agricultural sector. We urge all members of Congress to work together to seamlessly extend, enhance or make permanent these important tax provisions this year.”
Renacci said, “While the goal is long-term, permanent reform of our overly burdensome tax system, we must work together now to agree on an extension of critical tax provisions to open the door to much-needed growth. Our small businesses are depending on it.”