Brady, McCarthy Introduce HR 11, the "Commitment to American GROWTH Act"
The top Republican on the House Ways and Means Committee Kevin Brady (R-TX) and House Republican Leader Kevin McCarthy (R-CA) today released H.R. 11, the Commitment to American GROWTH Act. To rebuild the greatest economy in a generation for our workers, families, and small businesses, this bill locks in key provisions of the successful Trump Tax Cuts to boost American jobs and paychecks, maximizes innovation through research and development, and secures America's medical supplies.
Upon introduction of the legislation, Rep. Brady said:
"House Republicans are committed to rebuilding the greatest economy our country had experienced in decades. President Trump proved that through low taxes and balanced regulation, we can grow jobs and paychecks. Using those proven tools, our bill will rebuild the economy, make America medically independent from China and take a major step toward our goal of lifting the U.S. to the most innovation-friendly nation on earth."
Leader McCarthy said:
"As our nation continues to make significant strides toward defeating Covid, we must simultaneously work to rebuild the greatest economy of our generation. But building back isn't enough -- we have to implement pro-growth policies that will guarantee America's citizens unprecedented prosperity. That is why last month House Republicans stood up to make our Commitment to America, and to underscore that we will always place the needs of hardworking citizens before all else. As part of this commitment, we need solutions that will invest in America's small businesses and their employees, and strengthens our supply chain. That is exactly what the Growth Act will deliver. I commend Kevin Brady for his work in drafting this important piece of legislation. These effective proposals will play a vital role in making our country more secure and resilient for decades to come."
Here are the Key Points of HR 11, the "Commitment to American GROWTH Act":
Jobs and Wages. The legislation locks in key provisions from the Trump Tax Cuts to boost American jobs and paychecks.
Supporting American Job Creators. Our bill encourages investment in research and development so we can continue to make, buy, and sell Made In America products.
Medical Independence from China. We cannot count on our foreign competitors to be there for us when the next tragedy strikes. The bill boosts American medical security so that our country can gain medical independence from China while supporting our scientists and researchers.
Winning the Innovation Race. Whatever country wins the innovation race wins the future. We encourage new start-ups and technology breakthroughs so the next big invention can be birthed here in America.
The Details: Here are the policy specifics for each section of the bill.
Part One: Growth in Business Investment to Boost American Wages and Jobs
What the bill does: The bill makes permanent the full expensing provision and the earnings before interest, taxes, depreciation, and amortization (EBITDA) standard for business interest limitation provisions in the Tax Cuts and Jobs Act.
Why the bill does this: Making these important TCJA provisions permanent will incentivize long-term investments by providing a business with long-term certainty and an opportunity to deduct the costs associated with those investments in the tax year in which they occur.
Part Two: Growth in Research in America
What the bill does: The bill repeals R&D Amortization, doubles the R&D tax credit, and allows companies to bring back their IP developed offshore without any immediate U.S. tax cost.
Why the bill does this: This grows our economy by incentivizing long-term investments. It makes America a more attractive place to grow a business, and it supports high-paying jobs in production and applied research and, ultimately, a higher standard of living for all Americans.
Part Three: Growth in America's Medical Independence
What the bill does: The bill lowers the tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures while provided a bonus R&D credit for countermeasures. It creates a 30 percent tax credit for new investments in advanced medical manufacturing equipment or machinery used in the U.S. to manufacture medicines or medical devices. It also provides a refundable R&D for pre-revenue medical research companies -- such as small biotech firms on the frontlines of cures research. And it amends the passive loss rules so that investors in certain infectious disease drug development firms can use the tax attributes of these pre-revenue firms to offset their income from other sources.
Why the bill does this: Investments in advanced manufacturing will help the United States regain its status as a global leader in manufacturing. It will help retain and create high paying jobs, support domestic innovation, and enhance national security--especially from China--and increase public health.
Part Four: Growth in Innovation and Technology Breakthroughs
What the bill does: The bill preserves valuable tax attributes of startup businesses from current law limitations when these businesses seek and receive new capital from investors. It also simplifies and expands tax deductions for start-up businesses.
Why bill does this: This bill makes it easier for America's innovators to start new companies -- including ones that are working on cures to deadly and rare diseases. It gives American innovators a leg up as they work on research and development of new technological breakthroughs.