Potential Tax Relief Bill Delayed in Senate

Earlier this year, H.R. 7024, received significant bipartisan approval in the U.S. House of Representatives (357-70). The bill aims to provide tax relief for American families and businesses.

Despite the overwhelming support in the House, the U.S. Senate has yet to take action on this crucial legislation. The delay has left many wondering why the Senate has not acted promptly:

• The passage of the Tax Relief for American Families and Workers Act of 2024 holds significance for several reasons.Encouraging Capital Expenditures- H.R. 7024 allows businesses to immediately deduct the total cost of certain assets, such as new equipment and property. This provision encourages capital expenditures, stimulates economic growth, and supports job creation. When companies can deduct these costs upfront, they are more likely to invest in modernizing their infrastructure and expanding their capacity.
• Enhancing Cash Flow- The bill proposes using the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) standard for deducting business interest expenses. By improving cash flow, businesses can make strategic decisions, expand operations, and invest in growth opportunities. This liquidity boost is especially crucial during economic downturns or periods of uncertainty.
• Boosting Domestic Investment and Innovation- H.R. 7024 includes provisions that allow American businesses to deduct their domestic research and development (R&D) expenses. By incentivizing innovation, this bill encourages companies to invest in home-grown solutions, technological advancements, and new product development. Ultimately, this benefits both businesses and the broader economy.

In summary, H.R. 7024 seeks to provide relief to American businesses, promote economic growth, and expand the Child Tax Credit. Its fate in the Senate remains uncertain, but it represents an important piece of legislation in ongoing tax policy discussions.  Striking a balance between tax relief and fiscal responsibility remains a challenge.
What do you think? Let your representatives in the U.S. Senate know where you stand.
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Contact them:
Senator Patty Murray                                                    Senator Maria Cantwell

Author

Matt Murphy, TCRCC Government and Regional Affairs Director, ​[email protected]