WASHINGTON, D.C. — U.S. Representative David Schweikert (AZ-01) authored an op-ed for the Phoenix Business Journal yesterday to advocate for the proven pro-growth policies in the Tax Relief for American Families and Workers Act, bipartisan legislation that will provide much-needed relief to struggling families and small businesses, spur innovation and job creation, and invest in the future of all Arizonans. Rep. Schweikert called on the U.S. Senate to swiftly pass the bipartisan tax package which passed the House with bipartisan support more than two months ago.
My View: Bipartisan tax package would help Arizona businesses grow
By Congressman David Schweikert
Phoenix Business Journal
April 10, 2024
Since first coming to Congress, my mission has been to help small businesses and families thrive in Arizona. As a staunch advocate for fiscal responsibility and economic prosperity, I’ve fought to foster a business environment where small businesses can succeed, innovation is incentivized, and workers and families are empowered.
Small businesses form the backbone of our local economy, making up over 92% of the shops and restaurants in Scottsdale. While traveling across the district, I frequently hear from business owners and listen to their concerns. Through my position on the House Committee on Ways and Means, which serves as Congress’s chief tax-writing committee, I enthusiastically work to advance meaningful tax policy that promotes economic growth and ensures prosperity for future generations.
Nearly seven years ago, I was proud to play an instrumental role in helping write the Tax Cuts and Jobs Act (TCJA), perhaps our nation’s most sweeping overhaul of the federal tax code in decades. In the first two years after TCJA, our country witnessed record-low unemployment, thousands of jobs created, and higher wages. This landmark legislation simultaneously lowered the tax burden for small businesses and American workers while encouraging innovation and competition to boost economic growth.
Building off the success of TCJA, my colleagues and I worked to provide small businesses and households with targeted, immediate relief through the Tax Relief for American Families and Workers Act. This bipartisan tax package, which passed the House by a vote of 357-70, would revive proven pro-growth policies like restoring full and immediate research and development expensing and 100% bonus depreciation. Modernization and productivity play critical roles in expanding the economy, and these two provisions promise to spur the next generation of economic disruptors and turbocharge investments in capital equipment and machinery.
R&D expensing can boost productivity, growth
Simply put, R&D expensing is an investment in our country’s economic future. Allowing businesses to deduct R&D expenditures ensures that money otherwise used for bearing the financial burdens of running a business can be reinvested into developing technology and innovative solutions that will enhance productivity, boost global competitiveness, and stimulate economic growth. This provision alone is estimated to generate over $70 billion in new R&D investment and support over 21 million American jobs while providing the government with more than an 8-to-1 return on its investment.
Similarly, the Tax Relief for American Families and Workers Act extends the allowance of a 100% bonus deduction for capital equipment and assets, giving businesses the green light to streamline their operations, upgrade manufacturing equipment and heavy machinery, and embrace state-of-the-art innovations that drive productivity. This provision is estimated to increase investment by $400 billion and create 73,000 new jobs.
By providing small businesses with the resources and incentives they need to modernize and grow, we can unleash the full potential of the American economy and strengthen our nation’s economic resilience, competitiveness, and leadership on the global stage.
The Tax Relief for American Families and Workers Act underscores the moral imperative of economic growth. As our economy expands, so does our revenue, and without growth, the government lacks a critical tool in restoring the fiscal sanity of the U.S. government.
This bipartisan tax bill provides much-needed relief to struggling families and small businesses, spurs innovation and job creation, and paves the way for a brighter and more prosperous future for all Arizonans. Now, this tax package awaits its fate in the Senate, while every day that passes is a wasted opportunity to deliver for our communities in need.
Bipartisan victories are few and far between in this Congress. We have the chance to enact meaningful and impactful tax reform for hardworking Americans. I urge my colleagues in the Senate to seize this moment and act in the best interest of our nation’s economic future.