Brooks Supports Pro-Growth Tax Extensions
WASHINGTON, D.C.— Congresswoman Susan W. Brooks (R-IN05) voted in favor of the bipartisan Protecting Americans From Tax Hikes (PATH) Act today, providing permanent and responsible tax relief to American families, businesses and entrepreneurs. This legislation passed the House of Representatives by a vote of 318 - 109.
“The PATH Act will grow the economy and empower businesses to invest with confidence in new equipment, research and jobs,” Brooks said. “Hoosiers will be able to keep more of their hard-earned dollars and will not be subject to arbitrary deadlines or unpredictable lapses in the tax code.”
Importantly, the PATH Act protects the medical device industry from the 2.3 percent medical device tax for the next two years. Of the top 50 life sciences companies in Indiana, 27 are in the medical device industry creating more than $10 billion in economic output for the state. The medial device tax has hindered some companies in Indiana from investing, creating jobs and conducting life-saving research.
“The moratorium on the medical device tax will lead to more device developments, improve our global competitiveness and create more jobs and opportunities for Hoosiers,” Brooks said. “Already, more than 20,000 people in the state of Indiana are employed by the medical device industry, and countless patients depend on medical device manufacturers for solutions. Without this burdensome tax in the way, the medical device industry can continue to innovate to save and improve lives and grow our Hoosier economy.”
In addition to the medical device tax suspension, the PATH Act makes a number of temporary tax provisions permanent and provides certainty to American businesses. Some of the permanent extensions include incentives for innovation, like the Research and Development (R&D) tax credit. The Joint Committee on Taxation, Congress’ independent, non-partisan referee for tax legislation, estimates that making the R&D tax credit permanent will increase the amount of research and development American companies undertake by 10 percent.
Additionally, the permanent enhancement and extension of Section 179 deductions included in the PATH Act will help small businesses and job creators make investments in equipment and plan for the long-term. Previous extensions of Section 179 have often been retroactive, preventing small business owners, like Hoosier farmers and manufacturers, from having the certainty they need to invest and grow their business with new equipment and software. Under the permanent extension, the National Federation for Independent Business estimates that economic output will be increased by almost $19 billion and more than 200,000 jobs will be created in the next decade.
In total, 55 tax relief provisions that expired at the end of 2014 are revived by the PATH Act. In addition to these provisions, the proposal includes a number of provisions designed to strengthen the integrity and effectiveness of tax credit programs including the Earned Income Tax Credit, the Child Tax Credit and the American Opportunity Tax Credit. Over ten years, the reductions in fraud are estimated to result in a $7 billion savings. In addition, a series of reforms designed to rein in the power of the IRS and change how the IRS may treat taxpayers has been included.