Fill me in: Congress has returned to Washington for its post-election lame duck session with a long to-do list of unfinished business. To support the economy, which is likely to weaken through 2023, three tax changes vital to American businesses should be at the very top of their list:
1. Research and Development: As of 2022, businesses must amortize — or deduct ratably over a five- or 15-year period — their research and development (R&D) expenses. If left unaddressed, this will raise the cost of innovation and slow economic growth going forward.
- Needed policy change before year-end: Congress should permanently restore the election for businesses to fully deduct their current-year R&D expenses.
2. Interest Deductibility: Also starting this year, the amount of interest expense that businesses can deduct is reduced. As of 2022, the deduction for business interest expense is limited to only 30% of…
