WASHINGTON – U.S. Representative Larry Bucshon, M.D. (R-IN-08) voted to pass the Tax Relief for American Families and Workers Act (H.R. 7024) to bolster Main Street business, provide tax relief to working families struggling with record high inflation, and support domestic job creators. The legislation has received large bipartisan support and was reported out of the House Ways and Means Committee with a vote of 40-3. Dr. Bucshon released the statement below following his vote:
“The Tax Relief for American Families and Workers Act is a strong bipartisan effort to improve the lives of Hoosiers and all Americans,” said Dr. Bucshon. “Expanding upon the success of the 2017 Tax Cuts and Jobs Act, this tax relief package fights fraudulent activity and provides critical support for hardworking American families whose pocketbooks have been squeezed by rising prices. It advances pro-growth policies that will directly benefit families, inspire investment in research-intensive small businesses, and decrease reliance on China. I am proud to support these policies to promote a robust U.S. economy.”
BACKGROUND
Expands Innovation and Competitiveness with Pro-Growth Economic Policies
- Research & Development (R&D) expensing so businesses of all sizes can immediately deduct the cost of their U.S.-based R&D investments instead of over five years – encouraging American innovation and improving our competitive position versus China and the rest of the world.
- Interest deductibility: continued flexibility for businesses forced to borrow at higher interest rates to meet their payroll obligations and expand their operations.
- 100 percent expensing: restore full and immediate expensing for investments in machines, equipment, and vehicles.
- Taiwan double tax relief: strengthen America’s competitive position with China by removing the current double taxation that exists for businesses and workers with a footprint in both the United States and Taiwan.
Builds Up Main Street and Rebuilds Communities Struck by Disasters
- Expand small business expensing cap: increase the amount of investment that a small business can immediately write off to $1.29 million, an increase above the $1 million cap enacted in 2017.
- Cut red tape for small business: adjust the reporting threshold for businesses that use subcontract labor from $600 to $1,000 and index for inflation – the first update to the threshold since the 1950s.
- Help families get back on their feet with disaster tax relief covering recent hurricanes, flooding, wildfires, and the Ohio rail disaster, including for Hoosiers impacted by the severe storms in Sullivan and Owen counties on March 31, 2023.
Supports Working Families with an Enhanced Child Tax Credit
- Expand access to child tax credit: phased increase to the refundable portion of the child tax credit for 2023, 2024, and 2025.
- Eliminate penalty for larger families: ensure the child tax credit phase-in applies fairly to families with multiple children.
- One-year income lookback: flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025, similar to bipartisan action taken six times in the past 15 years.
- Inflation relief: adjust the tax credit for inflation starting in 2024.
Eliminates Fraud and Waste by Ending the Employee Retention Tax Credit Program
- Saving over $70 billion in taxpayer dollars by accelerating the deadline for filing backdated claims to January 31, 2024, under the COVID-era employee retention tax credit – a program hit by major cost overruns and fraud.
- Increases supply of low-income housing by enhancing the Low-Income Housing Tax Credit, a public-private partnership with a proven track record, with increased state allocations and a reduced tax-exempt bond financing requirement.
Congressman Larry Bucshon, M.D. represents Indiana’s 8th Congressional District in the United States House of Representatives and is a senior member of the House Energy and Commerce Committee.
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