Peoria Standard

Washington, D.C. – Congressman Darin LaHood (IL-16), a member of the House Ways and Means Committee, voted to advance H.R. 3936, the Tax Cuts for Working Families Act, H.R. 3937, the Small Business Jobs Act, and H.R. 3938, the Build It in America Act, during a full committee mark up this week.

"As I've traveled throughout the 16th District of Illinois, I consistently hear from farmers, energy producers, small businesses, and workers who want Congress to strengthen our competitiveness in the global economy and invest in jobs in our communities in the Midwest," said Rep. LaHood. "With these three bills, Ways and Means Republicans took an important step to grow our economy, build off the success of the Tax Cuts and Jobs Act, counter China's aggression, and invest in America's workforce."

Highlighting his recent 16th District Ag Advisory Committee meeting, LaHood spoke in support of the bills, underscoring the positive impact these pro-growth policies will have on farmers and producers in central and northwestern Illinois. You can view his remarks below or HERE.

H.R. 3936, the Tax Cuts for Working Families Act:

• To help working families struggling under Biden’s inflation crisis, the Ways and Means Committee is helping Americans keep more of their hard-earned money.
• Under President Biden, inflation has gone up faster than wages for a record 26 straight months, leaving families farther and farther behind.
• This bill provides a new $4,000 Guaranteed Deduction Bonus for the next two years, which will result in annual tax savings and more money in the household budgets of middle-class families who have been hit hard by the cost-of-living crisis.
• This applies on top of the current Guaranteed Deduction (also known as the “Standard Deduction”), which was doubled by Republicans in the 2017 tax reform law.

H.R. 3937, the Small Business Jobs Act:

• Encourages investment in new equipment and production capacity by increasing immediate expensing for small businesses to $2.5 million.
• Builds on successful policy from the 2017 tax reform law, which doubled the expensing limit from $500,000 to $1 million.
• With this provision, small businesses like farms and machine shops can afford new equipment and expand their businesses. Their investment raises productivity, boosts wages, and creates more jobs.
• Delivers greater economic development and opportunity with a new Rural Opportunity Zone program that will revitalize struggling communities.
• Opportunity Zones (OZs) were a major success from the 2017 tax reform law. They attracted investment and jobs to low-income communities across the country that were struggling to attract investment and capital.
• While being the largest economic development program, investments have tended toward urban areas, which received 95 percent of OZ investment.
• This provision will allow rural communities to benefit from the same recovery and development OZs have delivered to urban areas.
• Stops the attack on the gig economy and Americans by repealing Democrats’ new rule that has the IRS targeting gig workers and those who use Venmo or PayPal to sell items like a used couch, guitar, or concert tickets.
• In 2021, Democrats reduced the IRS reporting threshold for these transactions from $20,000 to $600.
• The Biden Administration knows this rule is unfair and unworkable, which is why they have already delayed implementation this year.
• Repealing this rule will ensure Americans aren’t saddled with a mountain of paperwork, confusion, or taxes that they don’t owe.

 H.R. 3938, the Build It in America Act:

• Restores American competitiveness and innovation by extending the ability for companies to immediately deduct research and development (R&D) costs.
• Starting in 2022, companies could no longer immediately deduct R&D costs and have been required to gradually spread those expenses over time, for a minimum of 5 years and as high as 15 years.
• Losing the immediate deduction has led to higher tax bills for small, innovative businesses – forcing them to slow their growth, reduce their workforce, or borrow funds to pay a big tax bill to the IRS.
• This provision will ensure that the United States sustains its status as a global innovation leader.

Original source can be found here.