America’s Economic Recovery, Continued Growth, and Job Creation Depends on Common-Sense Fiscal Policy.
Who We Are
We are a non-partisan group of businesses and associations who believe that pro-growth tax and fiscal policy changes and legislation are essential to helping to continue our economy recover, while ensuring job retention and creation to foster an economic rebirth.
Brian Johnson is a Principal at The Vogel Group and a senior leader of the firm’s government affairs practice with over a decade of experience in energy, infrastructure, tax, and trade policy. In this capacity, Brian represents clients on a host of financial and tax policy issues as well as many others.
Previously, Brian was a Director of Federal Relations for the American Petroleum Institute and prior to that, a manager of federal affairs for Americans for Tax Reform and has worked for past-US Presidents in the field and on many political and presidential candidate campaigns.
As a policy expert he has testified before Congress and his expert commentary has been featured on BBC, CNN, C-SPAN, Fox News, Fox Business News, PBS, and many more.
Due to the government shutdowns associated with the COVID-19 pandemic, American businesses and their employees have been hit especially hard. Now, as our economy begins to rebound, tax policy changes can either help, or hurt, this recovery. While Congress has allocated trillions of dollars in new spending to help bolster struggling businesses,
More must be done and Congress must do no harm.
How Do We Do This?
There are several existing ways the U.S. government can support American businesses. But above all else, they must prioritize support for investment and job growth. Our nation’s economy is recovering, but its future is still vulnerable. Therefore, Congress should enact policies and practices that foster job creation and economic growth.
Protect Existing Interest Deductibility Standards
As Congress evaluates the Build Back Better Act (BBB), it is crucial the longevity of our nation’s economy is top of mind. Unfortunately, there are provisions under section 163(n) that will reduce the deductibility of US interest expense for multi-national businesses starting in 2022.
The proposed change will significantly reduce the amount of interest a US business can deduct if they are members of a multi-national financial reporting group. Specifically, the multi-national group's US operations interest expense will be limited to its proportionate share of the group's overall interest expense. This will add additional limitation that is even more restrictive than the pending interest limitation standard under current law based on earnings before interest, tax (EBIT). Not only does this change threaten our economy’s progress, but it also harms companies’ ability to invest for future growth and increases the cost of capital for investments by US based multinational companies, decreasing global competitiveness.
This additional limitation pushes the U.S. well outside of global tax norms for interest deductibility, which would cause significant harm to America’s competitiveness on the global stage.
The House-passed BBB has included Sec. 163(n). We are calling on the Senate to strip out this harmful provision!
This is a tax increase on job creators.
Congress should prevent this detrimental change to preserve both business growth and job creation as our nation continues to recover from the blows of COVID-19.
Promote General Business Credits
The U.S. Government grants companies tax credits for a variety of reasons, including addressing specific social concerns, encouraging environmental responsibility, and providing incentives to engage in desirable business practices.
These bundles of credit are known collectively as General Business Credits (GBCs).
GBCs can come in the form of tax credits for:
Energy innovation, efficiency, and environmental responsibility
Hiring workers in economically disadvantaged groups, who may otherwise have higher unemployment rates
Providing childcare to children of employees
Investments in housing for disadvantaged communities
Engaging in research and development
GBCs provide a boost to the economy and allow businesses to use the credits to reinvest in themselves, hire employees and create jobs in the community.
To incentivize companies to continue these programs during economic uncertainty, Congress must allow a current refund of GBCs.
Refunding GBCs this year will provide urgently needed liquidity into our economy, without an additional cost to taxpayers.
There is nothing partisan about fostering our nation’s economic success with common-sense tax policy. Sign up now to join our efforts to ramp-up America’s recovery!