Nebraska Chamber Thanks Congressional Delegation For Support Of Federal Tax Relief Plan

Nebraska Chamber Thanks Congressional Delegation For Support Of Federal Tax Relief Plan

Wednesday, December 20, 2017 - 12:45pm

LINCOLN – Nebraska Chamber of Commerce & Industry President Barry Kennedy today issued the following statement regarding congressional approval of the federal tax relief plan:

“Congress and the administration have just made history.  Coupled with the regulatory reform that has been implemented over the past 11 months, this tax relief bill makes America one of the most competitive places in the world to do business – and Nebraskans will benefit.  A rising tide lifts all boats.

 

“The State Chamber thanks all five members of Nebraska’s federal delegation for their support of this long overdue tax relief and pro-growth stimulus.  Special thanks to Congressman Adrian Smith for his work on the Ways and Means Committee – addressing key provisions such as continued deductibility of property taxes for businesses and agriculture – as well as Senator Deb Fischer for her role with the majority leader’s team to help secure the bill’s passage.

 

“This is the first major tax relief at the federal level in three decades.  It will produce national economic growth and individual prosperity. This plan will not only spur businesses to grow and hire, it will allow more take-home pay for hard-working Nebraskans. 

 

“Smart tax relief should aim to grow the private sector - and this bill will do that.  Moreover, it will compel high-tax states and local governments to re-examine their tax-and-spending priorities, resulting in more tax transparency and competitiveness.”

 

According to the Tax Foundation, the Tax Cuts and Jobs Act will increase the long-run size of the U.S. economy by nearly 2%, resulting in higher wages and nearly 340,000 additional full-time equivalent jobs.  To grow business investment and capital, the bill does the following:

  • Lowers the corporate tax rate permanently to 21%, starting in 2018 – the largest corporate rate reduction in U.S. history.  It also eliminates the corporate alternative minimum tax.
  • Establishes a 20% deduction of qualified business income from certain pass-through businesses (small- and mid-sized firms organized as S corps, partnerships, LLCs and sole proprietorships).  More than 90% of Nebraska businesses are pass-through entities, which pay income taxes at individual rates.
  • Provides full (100%) and immediate expensing of short-lived capital investments for five years.  The bill also increases the section 179 small-business expensing cap from $500,000 to $1 million.
  • Retains the tax incentives for research and development.

The State Chamber is Nebraska’s largest statewide business association and has proudly served as the voice of the business community since 1912. 

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