2 days ago
- Business
- Wall Street Journal
Full Expensing Boosts Economic Growth
The most efficient way for Congress to unleash economic growth is to establish full and permanent expensing—a policy allowing businesses to deduct immediately the cost of their investments in capital assets including machinery, equipment and buildings. The 2017 Tax Cuts and Jobs Act tried to achieve this goal, but its provision excluded investments in factories and other buildings and began phasing out in 2023.
Republicans must not make the same mistake again. The 'one big, beautiful bill' recently passed by the House includes full expensing, but it would expire at the end of 2029. The Senate should make this provision permanent. The Tax Foundation estimates that this would increase America's long-run gross domestic product by 1%.
