During my term in Congress, I noticed the fundamental truth about American democracy – when Americans vote for change, they vote for their wallets. That’s simple.
The pattern of anti-nepocoling in three consecutive presidential cycles emphasize this reality. The Americans repeatedly rejected the sitting administration not so much because of the ideology or partisan loyalty, but because of their experienced economic experience. Forget Dow; When voters feel a pinch of trade or gasoline pump, they require a change.
The public has now given the second opportunity of a Republican administration under the guidance of Trump, whose campaign on the construction of a stronger and more advanced economy has echoed with voters.
Trump will need to essentially increase the economy if he and Republicans want to maintain power. The upcoming calculation over the renewal of Trump tax reduction for 2017 provides an opportunity for the provisions on incentives to compensate for two key pillars of economics: small businesses and housing.
Retroactive research and development costs repair – the incentive to incentives for work and GDP
In the past three years, the law on tax and job reduction or tcs has increased taxes on many small companies with significant margins, especially companies that improve their products or experiment with ways to be more effective.
This is because, under Article 174, the company’s laws are forced to be amortized by certain technical costs over several years, rather than rejecting them at once. For example, if you designed the product update, you could usually take 100% deduction of all the costs associated with this update. According to Tcja, you would instead pay a 90% tax tax in the first year.
Although it can seem as a esoteric tax issue, the reality is that there are tens of thousands of companies across the country that see anywhere of 300% of direct bankruptcy tax increase. Smaller businesses are feeling the pain the mostas they do not have capital reserves for the survival of huge tax increases.
The small steel production company I know exceeded $ 35,000 taxes to $ 1.3 million, just because they employed engineers. It was not a planned policy. In order to add an insult to injury, China offers deduction 20 times more than now for the same costs.
The retroactive repair of Section 174 would be a huge package of stimuli for small businesses. Repair has wide double -sided support (previous solution, Hr 7024, brought the house 357 votes at 70), but currently the legislation improves it only on the basis, which means that only since January 2025. If companies can compensate for older tax overpayments, even only for 2024, it would immediately insert the economy with tens of billions of dollars.
The more important Trump is more important, the money would be available to US companies in 2025, and before medium means and would additionally bow to it with a key segment of voters who begged to be repaired.
Fighting inflation with low income accommodation
In the congress, I learned that a highly flying economy does not respond to the housing market. From the pandemic, we have seen the biggest increase in rent since we had recorded records. The mortgage rates were equated, but they still lock millions from the American dream of the ownership of the home. A sudden increasing inflation through the costs of insurance, work and supply exerts a strong pressure on homeowners, renters and working American families in almost every country.
When we say we have a problem with inflation, what we actually think is that we have a problem with housing costs. Relative importance of housing costs within the consumer prices (CPI) index, which measures a change in the price of goods and service of a wide consumption, represents a 35% of the share of all objects. The cost of shelters, including rent and mortgage payments, increased to 57 consecutive months. To say another way, if The shelter was off Of the CPI, the total inflation would be at or below the target Fed level in 16 of the last 20 months.
Here, again, changes in tax policy can attack transformation in apartments costs, reducing accounts for millions of families. Since 1986, a tax loan for low -revenue housing (LIHTC) has been a reliable mechanism for stimulating economic growth, at the same time the construction and preservation of achieved, affordable homes. Lihtc to subsidize the cost of developing low income accommodation by allowing those who invest in qualified projects to take up to 9% of the tax loan over construction costs. It gives states to decisions, promotes private capital and management and does not relieve a large bureaucracy. The hugeness of this incentive has resulted in 4 million affordable homes for 9,280,000 families in the last 30 years.
Republicans and Democrats presented the legislation to expand and reinforce the tax loan, which would increase the housing offer at a critical moment. Again, these are extremely supported by both sides. An increase of 12.5% award to the upper limit of each country’s housing loan, together with many other improvements, is also included in the aforementioned mentioned HR 7024. If Trump hired this change, it would result in approximately in 200,000 additional affordable homes Over the next decade from what would otherwise be possible.
Realizing Trump’s economic promise
Looking in advance, the success of the administration will be measured by its ability to translate politics into the results of pocket books for everyday Americans. The window window is clear but final; Although the proposed employment initiatives and tax reforms provide the frame, their success depends entirely on the execution that affects the economy of the kitchen table.
With a clear mandate for change and comprehensive economic booklet, Trump’s administration is now facing its defining challenge: by creating an economy that brings tangible benefits in all segments of American society. The advocacy of these two provisions would tell the American people that Congress and President Trump take care of the real economy and Americans who do so.
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