Dingell Praises Administration's Plan for Strengthening Economic Recovery and Putting Americans Back to Work
Press Release
Congressman John D. Dingell (D-MI15) commended President Obama's new initiative to promote small business growth, and further economic recovery, which he announced today in Cleveland, Ohio.
"President Obama's announcement today about tax measures to bolster our Nation's small businesses and improve infrastructure development are common-sense policies that will help put more Americans back to work," said Dingell. "The President's plan includes a permanent extension of the research and development tax credit, something I have long supported as a necessary measure for keeping American workers and businesses at the forefront of the technologically-driven global economy. I am also pleased that the Administration's plan will allow businesses to deduct 100 percent of the value of new equipment purchases through 2011, which will free up more money for them to expand hiring."
The research and development tax credit was first enacted in 1981 and has been subject to temporary extensions ever since. Frequently, the tax credit has been allowed to lapse, promoting uncertainty among business and harming U.S. technological innovation. The Administration's plan to allow temporary expensing of 100 percent of new equipment purchases will allow businesses to use nearly $200 billion they otherwise would have spent on taxes instead to hire new workers. The U.S. Treasury would eventually recoup this lost revenue as businesses give up their future annual depreciation allowances in future years when the economy has improved.
Dingell added, "I am also pleased to hear of President Obama's proposal for a $50 billion investment in infrastructure projects, such as improving our rail lines in anticipation of high speed rail, reconstructing and rehabilitating our highways and roads, and rebuilding our runways. Such projects help to improve the quality of life in the community, as well as provide needed construction jobs quickly. While the details of the President's proposal still need to be worked out, I hope both parties and both houses of Congress will work together with the Administration to ensure this tax credit and infrastructure investment initiative is passed before the end of the
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