CRANE: Business Income Bipartisan Tax Working Group Raises Important Concerns about Negative Impact of MACRS Repeal on Revenue, Economic Growth

www.CRANECOALITION.org
Chad Kolton
571-414-0730

July 9, 2015

WASHINGTON, DC -- Kevin Dempsey, Senior Vice President for Public Policy at the American Iron and Steel Institute and spokesman for the CRANE Coalition, issued the following statement about the Business Income Bipartisan Tax Working Group’s report to the Senate Finance Committee on reforming America’s business tax system:

“The Business Income Bipartisan Tax Working group has raised very important concerns about proposals to slow or even eliminate accelerated depreciation deductions to help pay for other tax reform ideas. As their report to the Senate Finance Committee makes clear, the Modified Accelerated Cost Recovery System (MACRS) has a ‘noticeable impact on investment’ that would be put at risk if it were changed or cut.

“The Working Group’s concerns reflect a new study produced by former Joint Committee on Taxation economists in April, which found that cutting or lengthening the depreciation schedule could result in long-term revenue losses and increased deficits which would undermine any short-term benefits – and could even result in an increase in the corporate tax rate.

“As a coalition of capital intensive industries that make significant investments domestically, we support the Working Group’s finding that MACRS repeal would have ‘serious effects on the overall level of investment in the U.S. economy.’ The Senate Finance and House Ways & Means Committee should consider this report a warning about making changes to a tax policy that has successfully supported economic growth more decades.”

The CRANE Coalition is made up of American companies and associations focused on preserving accelerated depreciation to provide the capital needed to continue driving America’s economic growth and job creation here at home.