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Tax Extenders Hitch a Ride on Omnibus and COVID-19 Relief Deal

Tax extenders are no stranger to hitching a last-minute ride on year-end legislation. This year they made another last-minute appearance, finding a hold in their own division of the 5,593-page bill to fund the government through the fiscal year and provide additional coronavirus relief through March. If you’ve followed the extenders debate, you know that […]

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Increasing the Tax Burden on Capital Investment and Automation Hurts Workers

Over the past half decade, there has been an ongoing debate about how automation and the use of robots in the workplace has impacted workers’ wages and employment. Recently, economists Andrea Manera and Daron Acemoglu of the Massachusetts Institute of Technology (MIT) and Pascual Restrepo of Boston University examined whether tax policy favors certain forms […]

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Reviewing the Commitment to American GROWTH Act

Last week, Congressman Kevin Brady (R-TX) and U.S. House Minority Leader Kevin McCarthy (R-CA) introduced H.R. 11, the Commitment to American GROWTH Act, outlining an alternative to Democratic presidential nominee Joe Biden’s tax vision. The proposal would address upcoming expirations of the 2017 Tax Cuts and Jobs Act (TCJA) and create or expand other tax […]

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Designing a Global Minimum Tax with Full Expensing

The work at the Organisation for Economic Co-Operation and Development (OECD) has included plans to propose a global minimum tax. While negotiations are ongoing, it is worth considering a design for the minimum tax that would be neutral toward investment decisions and minimize complexity and compliance costs. Over the summer, a draft of an OECD […]

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President Trump Outlines Second Term Tax Ideas

The Republican National Convention is underway this week and President Trump’s campaign released a second term agenda outlining his policy vision in broad strokes. While light on detail, the agenda includes a few tax policy items like expanding existing tax breaks, creating credits for specific industries and activities, and unspecified tax cuts for individuals. The […]

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New Accelerated Depreciation Policies to Spur Investment in Australia, Austria, Germany, and New Zealand

Countries around the world are experiencing a sharp downturn in economic activity as an impact of the COVID-19 health crisis. To cushion the immediate liquidity effects of containment and mitigation policies, governments responded rapidly with emergency tax and fiscal policy measures. As these short-term measures are starting to expire, policymakers are increasingly looking at mid- […]

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Economic Recovery and Deductions for Worker Training

Yesterday, Scott Pulsipher and Michael B. Horn wrote on RealClearPolicy.com, “An obstacle to employers investing more in their employees’ education is that Section 127 of the tax code has been frozen in time since 1986.” Section 127 allows employers to provide up to $5,250 annually for worker education costs that can be tax-deductible and excludable […]

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Details and Analysis of The CREATE JOBS Act

Today, Senators Ted Cruz (R-TX) and Martha McSally (R-AZ) introduced the CREATE JOBS Act (Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups) that would make two significant changes to incentivize investment in the United States. The proposal would prevent scheduled changes that would worsen the tax treatment […]

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Three-Fourths of New 2016 Investment Was Excluded from Improved Cost Recovery

Recent IRS data gives us insights into new capital expenditures made by both individuals and corporations in 2016. In total, the IRS estimates that individuals reported $347.1 billion in capital expenditures and corporations reported nearly $1 trillion of assets placed into service. An important takeaway from this data is that it sheds light on what […]

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1980s Tax Reform, Cost Recovery, and the Real Estate Industry: Lessons for Today

Key Findings Allowing companies to fully and immediately deduct investments in structures is one of the most cost-efficient ways lawmakers can stimulate investment, create jobs, and boost GDP during a post-pandemic recovery. Changes to depreciation schedules in the two pieces of major tax legislation in the 1980s influenced investment in real estate and have since […]