MSCI Continues To Advocate That U.S. Lawmakers Extend Tax Cuts
Last week, the Metals Service Center Institute (MSCI) signed two letters that urge U.S. lawmakers to act quickly to extend expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA). As MSCI members know, the TCJA reduced the U.S. corporate tax rate and the individual rates small businesses pay, created a new deduction for pass-through companies, and enacted other pro-growth and pro-manufacturing policies.
The first letter, signed with the U.S. Chamber of Commerce (USCC) and dozens of other organizations, was sent to all lawmakers in the U.S. House and Senate and is available at this link. It argued, “As lawmakers contemplate advancing tax reform legislation through budget reconciliation this year, the importance of adopting the appropriate budget baseline cannot be overstated. We believe it is imperative that Congress adopt a current-policy baseline.”
Why? As the letter explained, “Adopting a current-policy baseline would avoid a $4 trillion dollar tax increase on American families and employers by creating a pathway for Congress to make the TCJA permanent. Doing so would provide businesses the certainty and stability they need to make the long-term investments that drive growth, accelerate productivity, and increase prosperity across all segments of the economy.” Adopting a current-policy baseline would provide businesses with the stability needed to make long-term investments and drive economic growth and prosperity.
Second, MSCI signed a letter with a coalition called Main Street Employers. This letter, sent to U.S. House leaders, concentrated on extension of the Section 199A deduction for pass-through businesses, maintaining reduced income tax rates on individual taxpayers and pass-through businesses, providing estate tax relief, and increasing deductions for business investment in equipment and research and development.
It noted action must happen quickly because, without it, “millions of Main Street businesses organized as S corporations, partnerships, and sole proprietorships will see their taxes go up sharply next year.” Specifically, “Taxes on these pass- through businesses will go up when they earn profits, when they invest, and when they pass their businesses on to the next generation.”
Interested in learning more? Main Street Employers offers more information about the Section 199A deduction for small businesses at this link.
Stay tuned to Connecting the Dots as members of the U.S. House and Senate move forward on TCJA extension.