U.S. SENATE – U.S. Senators Martha McSally (R-AZ) and Ted Cruz (R-TX) introduced legislation this week to remove tax barriers and spur economic growth across the country.
The Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups (CREATE JOBS) Act would accomplish one of the most important structural reforms to the tax code possible: expensing reform.
"As we continue to confront the coronavirus and its economic impacts, I'm working to implement policies that encourage investment in our country,” McSally said. “Our bill does this by removing unnecessary tax barriers, which will incentivize American businesses to expand or bring their manufacturing and research and development back home. It will also update provisions from the Tax Cuts and Jobs Act that are set to expire in the coming years to encourage economic growth through the end of the pandemic and beyond. By doing this, we will help restore the booming economy that was realized prior to the pandemic."
"As a result of the economic devastation caused by the coronavirus pandemic, hardworking men and women have lost their jobs, small businesses have shuttered, and entire industries are struggling to reopen and rehire their employees,” Cruz said. “Now more than ever, we need to focus on the long-term recovery of our country and getting America back to work. One of the best ways to do that is by restructuring the tax code and reform expensing. Doing this would cost less than one-third of the proposal Democrats are pushing, while generating dramatically more investment in America's workforce. Rather than focus on another massive, short-term spending measure, this legislation will create hundreds of thousands of jobs and increase wages for hardworking Americans all across the country for years to come."
Specifically, the CREATE JOBS Act:
Taken together, the Tax Foundation estimates that these provisions would increase long-run GDP by 5.1%, increase wages by 4.3%, create over 1 million full-time jobs for American workers and help keep the United States on the leading edge of innovative research.
The full text of the legislation can be read here.