Over 30 Organizations Urge Senate to Make Critical Tax Provision Permanent
The Restore American Investment Now (RAIN) Coalition applauds the over 30 major industry organizations – representing hundreds of entities – for urging Senate leadership to permanently restore the EBITDA standard for business interest deductions.
Research shows the restrictive EBIT standard could cost the U.S. economy up to 867,000 jobs, $58 billion in employee compensation, and $108 billion in GDP over the long run. For capital-intensive industries, the loss of depreciation and amortization in the calculation means higher taxes, decreased investment, and fewer jobs.
In a letter to Senate Majority Leader John Thune and Finance Committee Chairman Mike Crapo, these industry leaders highlighted how the current EBIT standard is hampering job creation and economic growth across multiple industries. The shift from EBITDA to EBIT made it harder for U.S. job creators to raise capital, hire new workers, and grow their businesses.
The letter was signed by diverse industry groups representing hundreds of entities including the International Franchise Association, National Restaurant Association, American Forest & Paper Association, American Hotel and Lodging Association, and many others.