One of the biggest mistakes of the 2017 Trump tax bill was that the 100% bonus depreciation – allowing companies to immediately write-off their capital expenditures – was phased down starting two years ago. Today, businesses can claim only 40% bonus depreciation on their investments in equipment and software. This reduces business investment.

The House version of OBBB brings back 100% expensing and expands it to manufacturing structures. Fantastic. But it’s only for four years. This means we’ll be right back here before you know it.

Club for Growth president, David McIntosh, and Susquehanna International Group managing director, Jeff Yass, explain:

When Congress enacts a temporary policy and then allows it to expire, the economic effect resembles a short-term stimulus, not a structural reform that fosters sustainable growth. The goal of tax reform should be to establish conditions for robust, stable economic growth through increased investment, job creation, higher wages and stronger productivity.