American businesses face two huge tax increases this year
To pay for the trillions of dollars in spending the?Biden administration?has overseen over the past two years, President Biden has been advocating tax increases, particularly on the “wealthy” and corporations. But what he fails to mention is that American business owners and their companies are already facing at least two huge tax increases this year.
The first has to do with research and development expenses.
Before last year, thanks to the 2017 Tax Cuts and Jobs Act legislation passed under the Trump administration, businesses that incurred these types of expenses — including supplies, technologies, salaries, contractor fees, materials and other overhead used to develop products — were allowed to deduct these costs in the year incurred, rather than capitalizing them as inventory and amortizing over a five-year period. But that part of the provision — known to us in the profession as Section 174 of the IRS Code — expired at the end of 2021.
(Read the full column in the?Washington Times)