Mr. Speaker, pursuant to House Resolution 1084, I call up the bill (H.R. 6756) to amend the Internal Revenue Code of 1986 to promote new business innovation, and for other purposes, and ask for its immediate consideration. Mr. Speaker, I…
Mr. Speaker, pursuant to House Resolution 1084, I call up the bill (H.R. 6756) to amend the Internal Revenue Code of 1986 to promote new business innovation, and for other purposes, and ask for its immediate consideration.
Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks and include extraneous materials on H.R. 6756, currently under consideration.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am grateful this bill has been brought to the floor for consideration.
I rise in support of H.R. 6756, the American Innovation Act, which supports and encourages entrepreneurs to start new businesses.
The United States recently dropped out of Bloomberg's list of the top 10 most innovative countries in the world. New business formations in the United States have taken a dramatic downturn since the 2008 recession.
Between 1977 and 2007, those 30 years, the economy added 120,000, net, new businesses each year. Since 2008, however, the economy has added only about 2,000, net, new businesses each year since.
We should all be committed to making the United States the innovation leader of the world. The American Innovation Act is a down payment towards reaching that goal.
The American Innovation Act encourages entrepreneurs in two ways:
First, H.R. 6756 allows new businesses to immediately deduct more of their startup organizational expenses. It simplifies the Code and allows businesses to deduct up to $20,000 of startup and organizational expenses when their new business begins. This doubles the amount of the expenses that a business may write off in its first year.
Second, the American Innovation Act helps new businesses innovate by preserving valuable tax benefits, like the R&D credit, that are generated from activities conducted in the business' early years.
As any entrepreneur knows, starting a new business requires hard work and a lot of capital. During its early years, many businesses operate at a loss, and these losses are used in later years when the business matures and becomes more profitable. To fund their innovation and growth, entrepreneurs and business owners may seek equity capital from other investors.
Today, the infusion of this new investment may trigger limits on the use of a corporation's valuable losses and credits from the business' earlier years. Under the American Innovation Act, our country's businesses may fund their growth and innovation with equity investments from new shareholders without limiting the use of these valuable losses and credits.
Mr. Speaker, the American Innovation Act supports our entrepreneurs and innovators and facilitates the creation of new businesses. I urge support for this important bill, and I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the distinguished gentleman from Texas (Mr. Brady), chairman of the Ways and Means Committee.
Mr. Speaker, I yield myself such time as I may consume.
Let me say to the gentleman that I am not sure how the economy works in Vermont, but I can tell you that in terms of the tax package--the original one and this one, 2.0--Florida is on fire, in terms of growth. There is more energy and more excitement about the tax thing.
Ninety percent of people are getting a tax break. For families of four in my area, it is $2,400. We have seen little or no growth for the last 10 years. Now we are at 2 to 3 percent. We have got real growth. It is tough to get the amount of workers that we now need in Florida, in general. That is pushing paychecks.
So I don't know what is going on in Vermont or different parts of the country, but I can tell you that in Florida it is making a huge difference in terms of the confidence with a lot of startups and entrepreneurs.
Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr. Mitchell).
Mr. Speaker, I yield myself such time as I may consume.
I just want to mention to the gentleman from Wisconsin that there were no amendments offered on this bill, if he wants to check that.
I also have a list of groups who are supportive of this bill, such as Associated Builders and Contractors, the Chamber of Commerce, Biotechnology Innovation Organization, and Angel Capital Association.
Mr. Speaker, I include in the Record this document listing organizations in support of the bill.
H.R. 6756 the American Innovation Act of 2018
AdvaMed
American Dental Association
Americans for Tax Reform, 60 Plus Association, American
Commitment, American Conservative Union, American Consumer
Institute, ALEC Action, Americans for a Strong Economy,
Association of Mature American Citizens, Campaign For
Liberty, Ryan Ellis, Center for a Free Economy, Center for
Freedom and Prosperity, Center for Individual Freedom, Center
for Worker Freedom, Citizen Outreach (Nevada), Consumer
Action for a Strong Economy, Council for Citizens Against
Government Waste, Competitive Enterprise Institute, Digital
Liberty, Family Business Coalition, Florida Center Right
Coalition, FreedomWorks, Frontiers of Freedom, Goldwater
Institute (Arizona), Granite State Taxpayers (New Hampshire),
Heritage Action for America, Hispanic American Center for
Economic Research, Hispanic Leadership Fund, Independent
Women's Forum, Independent Women's Voice, Institute for
Liberty, The James Madison Institute (Florida), Jesse Helms
Center (North Carolina), Kansas Policy Institute, Less
Government, Maine Center-right Coalition Meeting, Mississippi
Center for Public Policy, National Taxpayers Union,
New Hampshire Center-Right Meeting, Ohioans for Tax Reform,
The Ohio Diversity Coalition, Oregon Capitol Watch, Pegasus
Institute (Kentucky), Pegasus Institute (Kentucky), Pelican
Institute for Public Policy (Louisiana), Property Rights
Alliance, Reaching America, Rhode Island Center for Freedom
and Prosperity, Rio Grande Foundation (New Mexico), Small
Business & Entrepreneurship Council, Ohio House of
Representatives Chair, Ohio Center-right Meeting, Taxpayers
Protection Alliance, Tea Party Nation, We the People
Convention, Women for Trump
Angel Capital Association
Associated Builders and Contractors, Inc. (Key Vote)
Biotechnology Innovation Organization
Chamber of Commerce
Club for Growth
Heating, Ventilation, Air Conditioning, and Refrigeration
Industry: Air Conditioning Contractors of America, Heating
Air Conditioning and Refrigeration Distributors
International. Plumbing Heating Cooling Contractors
Association, AMCA International, Air-Conditioning Heating and
Refrigeration Institute
Heritage Foundation
National Venture Capital Association
The National Electrical Contractors Association
Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. LaHood).
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, as someone who has been in business 30 years, I can just tell you that, in the last couple of years, our economy in Florida and I think all over America has exploded. People are excited. They are enthusiastic.
In fact, I did a roundtable of all women in my district. Why did I do that? Because 57 percent of startups in the next 10 years will be women led. So why would we want to not support giving them additional deductions? Instead of just writing off $5,000, they can write off $20,000.
In terms of opening businesses, it is as little as 2,000 a year. It used to be 100,000-plus new startups a year. That is where the jobs are created.
I chaired the local chamber in Sarasota, Florida. I can tell you, out of the 2,400 businesses, most of them were 15 employees or less, 90 percent.
I also chaired the Florida chamber. There were 126,000 businesses in that federation, and most of them were 15 employees or less, many times 1, 2, 3 employees.
It is tough when you open a business. Usually, you have losses for a couple of years. This bill helps to address that, especially as they try to attract capital. They could use some of those losses to attract capital.
This is all about pro-business and growth. We have had little or no growth for the last 10 years. Now we are starting to take off and be much more competitive in the world. That is what this bill is all about.
Mr. Speaker, let me just close with this thought. For too many years, the United States has been lagging in the creation of new businesses. Startup businesses are vital to the American economy, because they are significant contributors to innovation, productivity, and job creation.
Together, we should all support the legislation. This makes it easier and less costly for hardworking Americans to realize their American Dream of starting businesses.
The American Innovation Act does just that. It supports innovators, entrepreneurs, workers, and the economy with commonsense policy solutions.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.