Capital Corner

In testimony submitted to House Ways & Means Committee this week, I made the case that tax provisions like accelerated depreciation are helping spur investment, income and job growth, particularly in the Midwest and Great Plains states. They should not be sacrificed in the coming tax reform battle. Read the Executive Summary and Full Testimony here.

Continue reading

See the op-ed I co-authored with Dr. Allen Sinai in Forbes today.  We highlight the dangers that lie ahead if lawmakers allow the Bush-era tax cuts to expire. The Horrific Accident Awaiting Us Over The Fiscal Cliff With the U.S. elections rapidly approaching, only to be quickly followed by the “Bush tax cuts” expiring at the end of the year in the absence of action by the President and a soon-to-be lame duck Congress, the reality is that failure to confront this deadline will result in a wave of tax spikes that will cause heavy job losses, reduce economic activity significantly, and produce a hit to financial markets that could set the economy off into another recessionary tailspin.  Our focus is on the tax piece of the “Fiscal Cliff.” Stark political lines have been drawn.  Republicans have called for a quick, temporary across-the-board extension for all tax cuts until real tax reform can be undertaken.  President Obama and Democratic leaders are amenable to temporary extensions but are standing firm against extending any tax cuts for the wealthy. The stakes are extremely high in this game of political poker, so it is important to know the ramifications of the bets, particularly when it…

Continue reading

The Navy’s renewable energy plan seems to be fading into the distance.  Yesterday, the Senate Armed Services Committee voted to strip much of its buying power of alternative fuels.  The Senate appears to be nearly in lock-step with the House who are also skeptical of the “Great Green Fleet.” As I noted on National Journal’s Energy & Environment Experts Blog this week, the high cost of renewable energy sources like wind, solar and biofuels will be extremely costly to taxpayers and inefficient for our troops–ultimately weakening our military forces.  You can read my full response here:

Continue reading

Today’s Bloomberg BNA Daily Tax Report story covers the uncertainty about depreciation allowances and how it is impeding new investment and job growth in the restaurant and retail sector. Legislation (H.R. 1265, S. 687) pending in both chambers would make permanent the 15-year depreciation schedule, which lawmakers and lobbyists said would provide businesses with the certainty they need to make long-term plans. The legislation is not scored, though a two year-plan covering tax years 2010 and 2011 that was enacted in December 2010 cost $3.6 billion over 10 years. “There are projects to renovate retail spaces that are being delayed because of the uncertainty in the tax law right now,” Bernstein said. “And those delays in remodeling projects cost jobs.” Delays cost construction jobs, construction materials, the potential for increased foot traffic and sales, and more employment in the store or restaurant, she said. Koenig said once the extenders phase is passed and substantive work on tax reform resumes, it is possible that lobbyists will ask lawmakers to look at an even shorter depreciation schedule. “We would argue that 15 [years] may even be too high,” he told BNA, noting that in the restaurant industry, the franchisee/franchisor agreement often states…

Continue reading