U.S. Sen. Ted Cruz (R-Texas) today introduced the Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups (CREATE JOBS) Act, legislation that would accomplish one of the most important structural reforms to the tax code possible: expensing reform. Sen. Cruz previously introduced this bill in July of 2020.
Upon introduction, Sen. Cruz said:
“The economic crisis created by the coronavirus pandemic and arbitrary shutdowns have left millions of hardworking men and women without a job and forced small businesses to close their doors. I am proud to introduce this bill to generate much needed investment in America’s workforce, create jobs, and provide relief for struggling Americans.”
Read the full text of the bill here.
BACKGROUND
Specifically, the CREATE JOBS Act:
- Applies neutral cost recovery to rental units and commercial structures.
- Makes the bonus-depreciation provisions of the Tax Cuts and Jobs Act (TCJA) permanent.
- Preserves full-expensing for research and development (R&D) spending.
Taken together, the Tax Foundation estimates that these provisions would increase long-run GDP by 5.1%, increase wages by 4.3%, create over one million full-time jobs for American workers and help keep the United States on the leading edge of innovative research.
In addition to introducing the CREATE JOBS Act, Sen. Cruz introduced a bill to ensure the historic GOP tax cuts on individuals become permanent as the COVID-19 pandemic continues to devastate American families.
For more COVID-19 information and additional resources, click here.
