Senator Ted Cruz
U.S. Sen. Ted Cruz (R-Texas) will reintroduce the Cost Recovery and Expensing Acceleration to Transform the Economy and Jumpstart Opportunities for Businesses and Startups (CREATE JOBS) Act this week. This legislation would vitally reform business expensing in the tax code. Sen. Cruz previously introduced this bill in 2020 and 2021.
Upon introduction, Sen. Cruz said:
“America’s business owners and workers are hurting from inflation outpacing growth, and supply chains still recovering from the coronavirus pandemic. 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 percent, increase wages by 4.3 percent, create over one million full-time jobs for American workers and help keep the United States on the leading edge of innovative research.
In 2017, Sen. Cruz helped enact historic tax reform, which gave a tax cut to virtually every taxpayer in America. It reduced taxes on small businesses, farmers, ranchers, and job producers, which has helped bring jobs to Texas. He has also fought to make permanent its historic tax cuts for individuals.
