Reducing Tax Bias Against Investment

On Friday, I voted for a bill to encourage investment, growth, and a strong recovery of the U.S. economy. This bonus depreciation bill allows businesses to immediately deduct half the cost of new equipment they need to increase their production. It will work alongside the Section 179 expensing bill we passed last month that permanently increased expensing limits. Together, these two bills will provide flexibility to reduce the initial cost of growing a business. They free up resources for farmers and small business owners to invest in their employees and production.

I’m a strong supporter and cosponsor of the bonus depreciation bill, and here’s why: In West Texas, we know that farmers and ranchers especially have to pay high costs upfront to purchase expensive equipment like tractors and combines. This bill will help them to pay for these big purchases with reduced borrowing so they can focus on a strong crop season. On a national scale, the Tax Foundation expects this bill to create 212,000 jobs, add $182 billion to the U.S. economy, and increase wages by 1% across the board. All in all, making bonus depreciation permanent will reduce the current tax bias against investment and allow increased business activity to boost our economy. I hope the Senate follows our lead in the House and moves forward on making tax policies that grow our economy permanent.