The U.S. Congress is creating an environment of unnecessary uncertainty related to certain tax provisions that is hurting our country and industry. Congress’s handling of these provisions, commonly called “tax extenders,” with inaction and delay creates an environment of instability for U.S. businesses which hurts the U.S. economy, our competitiveness around the world and costs U.S. jobs. Of course this also hurts the boating industry.
Tax extenders refer to about 50 tax provisions that were set up by Congress to expire each year. Most of the 50 items have been around for many years (some decades) and among them are the research and development credit, Section 179 small business expensing, miscellaneous depreciation rules and various energy related provisions.
Unfortunately, Congress has developed a habit of approving these tax extenders at the end of the year while making them retroactive to the beginning of that year. Last year on December 19, 2014, with twelve days left in the year, Congress approved the tax extenders just for the year 2014, retroactive to January 1. This year Congress has still not approved the tax extenders for 2015.
The uncertainty that Congress is injecting into the business environment is both harmful and unnecessary. It creates instability for U.S. businesses which undermines business confidence and delays job creating investment decisions.
U.S. businesses, including those in the boating industry, need a stable tax environment. Congress should approve the 2015 tax extenders immediately and work toward permanent, or at least multi-year, approval of these provisions which would create a more stable business environment and increase business confidence. This improved confidence would result in new long term plans and investments which would improve the economy and create jobs. A strong, stable and confident economy is good for the boating industry,
Congress can change or eliminate these tax extenders if they want; they are entitled to do that. However, Congress should not manage them in a way that creates tremendous uncertainty that hurts the U.S. economy and cost jobs. We need our Congress to step up and take immediate action on this important issue.
Bill Yeargin is the president and CEO of Correct Craft.