MSCI Urges Quick Action On Tax Extenders
Last week, MSCI and more than 2,000 companies, associations and organizations sent a letter to members of the U.S. House and Senate urging them to act immediately to seamlessly extend, enhance or make permanent expiring tax provisions. The letter argued, “Failure to extend these provisions is a tax increase. It will inject instability and uncertainty into the economy and weaken confidence in the employment marketplace. Acting promptly on this matter will provide important predictability necessary for economic growth.”
As a reminder, a recent Grant Thornton poll found uncertainty about these provisions has already affected companies’ decisions for 2016. The survey reported more than half of all entities that utilize at least one of the expiring provisions have made investment decisions for 2016 based on the assumption that Congress will not extend them.
The U.S. Senate Finance Committee passed a tax extenders package earlier this summer, but the full chamber has not yet taken up the legislation. The U.S. House Ways and Means Committee also has not yet acted on its version of tax extenders legislation. If Congress does not act on this matter, more than 50 tax credit and deduction programs, including the research and development tax credit, bonus depreciation and several Subchapter S Corporation provisions, will end at the end of 2015.
According to Congressional Quarterly (subscription required) House and Senate leaders are considering whether to attach tax extenders legislation to other must-pass legislation, including a fiscal year 2016 spending bill and a highway spending reauthorization bill. Together the signers of the letter to Congress represent millions of individuals, businesses of all sizes, community development organizations and non-profits.
The full letter, which was organized by the National Association of Manufacturers, is available here.