Senator Pushes for Permanent Business Tax Breaks

Clear Facts

• Senator Steve Daines is advocating for the permanent extension of business tax breaks in President Trump’s tax bill.
• Daines believes that permanent tax provisions will stimulate economic growth and innovation, helping the U.S. maintain a competitive edge over China.
• While permanent extensions could increase the bill’s cost, Daines argues they will ultimately pay for themselves through enhanced economic growth.

Republican Senator Steve Daines of Montana is taking a firm stance on President Donald Trump’s proposed tax legislation. As a member of the Senate Finance Committee and a supporter of Trump, Daines insists that the bill must include a permanent extension of certain business tax breaks to earn his approval.

Daines is particularly focused on ensuring that provisions related to research and development expensing and capital expenditures do not expire in five years, as outlined in the House-passed version of the bill.

“My highest priority is permanence,” Daines emphasized, highlighting the importance of making these tax provisions lasting fixtures since the initial enactment of Trump’s tax cuts in 2017.

During a recent meeting at the White House, Daines, alongside other Senate Finance Committee members, presented his case for permanent business tax cuts to President Trump and senior administration officials. With Senate Republicans working against the clock to amend the House-passed bill, the goal is to have an updated version ready by Senate Majority Leader John Thune’s July 4 deadline.

Daines argues that making these business tax provisions permanent would significantly enhance the bill’s potential to drive economic growth and foster innovation. He believes this would allow the United States to maintain its competitive edge over countries like China.

“There’s nothing more stimulative and nothing more in terms of building out innovation,” he stated. He added that the uncertainty of temporary provisions “freezes capital,” whereas permanence would “continue to unleash capital investments.”

Though the permanent extension of these provisions could add considerable costs to the bill, Daines is confident in their economic benefits. “It more than pays for itself because of additional economic growth,” he asserted, noting the potential for significant innovation breakthroughs resulting from increased investment in research and development.

Recent analysis from the Tax Foundation supports Daines’ view, suggesting that permanent business provisions would more than double the long-term GDP effects of the tax bill. Daines mentioned that President Trump is receptive to this approach, recognizing the stimulative impact of capital expenditure expensing and the importance of R&D expensing for global competitiveness.

Despite Speaker Mike Johnson’s call for minimal changes to the House-passed bill, Daines believes that House Republicans will ultimately accept modifications to make the business provisions permanent. “Chairman Smith and Speaker Johnson are aware and I think they are assuming and probably expecting that we are going to take … the House bill and make those permanent,” Daines noted.

As the debate continues, Daines remains hopeful that his push for permanence will be realized, ultimately benefiting the U.S. economy and its position on the global stage.

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