In the US the Business Roundtable (BR) has written to the Senate in relation to certain tax issues. The BR is a business grouping of CEOs from large US companies who have USD 7.4 trillion in annual revenues and together make up more than a third of the value of the US stock market. The report refers to the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act. The provision for certain tax reliefs given to business to be allowed to expire would in the view of the BR give rise to more uncertainty for business. This uncertainty may affect the investment decisions made by US companies or cause delays in the implementation of projects.
Although tax is not the primary motive for making a particular investment decision it can represent a significant cost and uncertainty as to tax outcomes therefore causes difficulty for enterprises considering new investments or projects. The BR is therefore keen for Congress to push through legislation to extend the tax relief. Some of the provisions expiring at the end of last year are referred to by the BR as being important to supporting business investment and creating jobs. These provisions include the R&D tax credit, bonus depreciation and the active financing provisions.
