Tuesday, December 22, 2015

Morgan Griffith on the Tax Code

From U.S. Representative Morgan Griffith (R-VA-9):

More Certainty in the Tax Code

As you know, I believe the current tax code is too lengthy and complex. Making the code simpler and fairer with lower tax rates continues to be a priority of mine.

While much of the code needs to be reformed, for many years, Congress has been granting people certain tax credits and deductions. In typical Washington fashion, however, Congress has waited to grant these benefits until December of the year in which the taxpayer was to get the credit. As such, families, farmers, and businesses haven’t had much certainty as to what the next year would bring.

As House Ways and Means Committee Chairman Kevin Brady (R-TX) said, “We have been extending these provisions for one year at a time, every year. [One of these has] been extended for 34 years. Others for 19, 17 years. We know them well.”

Recently, I supported an important package, which became law, to improve the tax code and provide more certainty by making permanent many tax benefits.

This package makes permanent a research and development tax credit, which should help encourage innovation.

This package also includes a permanent extension of the child tax credit, which is intended to help offset some of the costs of raising kids.

Another meaningful provision deals with Section 179 expensing, which had been repeatedly extended over the past 12 years. This package permanently extends the small business expensing limitation, helping farmers and small businesses more quickly recover the cost of major equipment purchases by allowing them to deduct, up to $500,000, the full purchase price of qualifying equipment and software purchased or financed during the tax year.

On Christmas Eve, I will send out a message which revisits one of my favorite Christmas carols. This message will also be posted to my website. Additionally, so as to enjoy this time with our friends and family, we will not be sending a column the week of December 28. Our schedule of regular weekly columns will resume the week of January 4, 2016.

To quote Clement Clarke Moore in Twas the Night Before Christmas, “Merry Christmas to all, and to all a good night!” And to quote Tiny Tim from Charles Dickens’ classic, A Christmas Carol, “God bless us, every one!”

If you have questions, concerns, or comments, feel free to contact my office. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at www.morgangriffith.house.gov. Also on my website is the latest material from my office, including information on votes recently taken on the floor of the House of Representatives.