“We can rebuild the greatest economy in the world by helping middle-class families, growing jobs, boosting paychecks, and making America the world leader in innovation and medically independent. We have an agenda for a healthy American economy, and it starts with bringing manufacturing back to the United States–particularly on the very medical supplies and drugs we need today,” Ways and Means GOP Leader Kevin Brady (R-TX) said. “America is going to harness innovation to cure coronavirus, return drug manufacturing to the United States, and make America healthy again.”
Help for the Middle Class and Growing the Economy
Making Middle Class Tax Cuts Permanent
- With the Tax Cuts and Jobs Act, Republicans cut taxes for middle-class families by doubling the standard deduction and offering generous support for children, adult dependents, and family medical expenses. We must not allow these important pro-middle class provisions to expire—Republicans want this support to be permanent.
More Middle Class Tax Cuts
- Along with making TCJA permanent, Republicans plan to work with President Trump to provide additional tax relief to hardworking Americans in the new year. When workers keep more of what they earn, local economies grow faster. When small business keeps more of what they earn, jobs grow faster. And when American businesses are rewarded for investing in technology and equipment for their workers, paychecks grow faster.
The American Innovation and Competitiveness Act (AICA), by Rep. Ron Estes (R-KS).
- Ensures that America continues to be the global leader in innovation by repealing the requirement to amortize R&D costs beginning in 2022.
- Grows our economy by restoring immediate R&D expensing that has long supported jobs and innovation.
- Incentivizes long-term investments in technological breakthroughs by allowing businesses to deduct R&D costs in the tax year that they occur.
Accelerate Long-Term Investment Growth Now (ALIGN) Act, by Rep. Jodey Arrington (R-TX).
- Makes permanent TCJA’s full expensing provisions.
- Incentivizes long-term investments by providing businesses an opportunity to deduct certain expenses in the tax year in which they occur.
Pushing Research & Development Into Hyperdrive by Doubling the R&D Tax Credit, by Rep. Jackie Walorski (R-IN).
- This proposal doubles the current R&D credit.
- Helps make R&D investments in the United States more competitive in the global marketplace and keeps America a leader in innovation.
Coronavirus Relief for Working Seniors Act of 2020, by Rep. Jackie Walorski.
- Rewards work by temporarily eliminating the penalty on certain seniors who choose to keep working.
- Provides relief to seniors who may want or need to earn at higher levels than planned in 2020.
- Ensures more workers are available to reopen the economy.
Domestic Medical and Drug Manufacturing Tax Credit, by Rep. Brad Wenstrup (R-OH).
- Lowers tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures.
- By providing a credit of 10.5 percent of the net income from the sale of these important medical products, this effectively cuts the corporate tax rate of 21 percent in half on eligible profits.
- The credit is limited by the wages allocable to the domestic production, which supports good high-paying jobs in the United States.
- Investments in advanced manufacturing will help the United States regain its status as a global leader in manufacturing.
- It will help retain and create high paying jobs, support domestic innovation, and enhance national security and public health.
- 30 percent tax credit for new investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture drugs, medical devices, or biological products.
- The credit phases down to 20 percent in 2028, 10 percent in 2029, and phases out in 2030.
Bringing Back American Jobs Through IP Repatriation, by Rep. Darin LaHood (R-IL).
- American companies can bring back their IP developed offshore without any immediate U.S. tax cost.
- Companies would still have to pay tax if they sold the IP in the future.
- Could continue to hold and use formerly foreign IP within the United States to support U.S. production and associated research and development.
- Supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans.
American Innovation Act by Rep. Vern Buchanan (R-FL).
- This bill makes it easier for America’s innovators to start new drug companies.
- We will be able to research and develop new cures and treatments
- Special tax treatment will help with start-up costs and preserve valuable tax attributes like R&D credits.
- CLICK HERE for bill text.