Farming & Ranching, Manufacturing & Technology represent Texas' treasured history – and its future as a global leader in innovation
By Aiden Buzzetti
AUSTIN, Texas (Texas Insider Report) — In a Congress that has taken very few steps forward on legislation of any kind, the bipartisan tax package – H.R. 7024 or "The Tax Relief for American Families and Workers Act of 2024" (TRAFWA) – passing out of the House of Representatives in January was not only a pleasant surprise, but a glimmer of hope for many Texans desperate for relief from the economic woes they’ve endured under the Joe Biden White House. As the eighth largest economy in the world, it’s important to understand just how important full passage of this bill is for Texas.
The only thing standing between the legislation becoming law is the United States Senate holding a vote as soon as possible.With a majority of Mainstreet businesses in Texas still grappling with an uncertain economic climate and the deadline to file this year’s taxes drawing near, we could use another round of common sense, pro-innovation tax policies.
H.R. 7024 is a close relative of former president Donald Trump’s 2017 Tax Cuts & Jobs Act, or TCJA for short. Its provisions restore several key pro-growth tax policies from the 2017 bill, such as the immediate expensing of research and development (R&D) investments, investments in new equipment, machinery and technology, and restoring bonus depreciation. The new bill also continues important child tax credits for families from the 2017 Trump bill.
The TCJA proved to be a major boon for the economy, with businesses and families seeing lasting benefits right up until most of them expired in 2021 or began to phase out in lessening percentages until disappearing.
While TRAFWA does renew the entirety of the 2017 Trump tax provisions, these pro-business and pro-family codes have specifically been prioritized because of the sheer impact they have on the growth of the economy.
For instance, three sectors that stand to benefit in Texas are also among its largest.
Farming, manufacturing, and technology represent the state’s treasured history – and its continued future as a leader in global innovation.
Farming, manufacturing, and technology represent the state’s treasured history – and its continued future as a leader in global innovation.
- In Texas, 86% of the land is in some form of agricultural production.
- At the same time, Texas has established itself as manufacturing mecca with more than 28,000 establishments and boasts a workforce of over 925,000 individuals.
- What’s more, over 800,000 Texans are currently working in tech jobs, making it the second largest tech workforce in the nation.
These sectors form a substantial part of the state's economic backbone, and they contribute heavily to both local employment and cutting-edge jobs with high wages. Essentially, these provisions help Texas start-ups bring in the nation’s smartest workers and put their money to work in Texas instead of other countries in Europe or Asia.
With a lower tax bill that doesn’t fund Joe Biden’s welfare agenda, entrepreneurs can benefit from freed up capital critical for fostering innovation, encouraging investment in infrastructure and R&D, as well as supporting job creation.
For Texas manufacturers, lowering the cost barrier for acquiring new equipment or upgrading facilities is pivotal for staying competitive in our global market. In technology, a sector where rapid evolution is standard, the ability to offset R&D costs immediately on technological advancements allows our companies to go to market faster – beating out China for the future. Don’t forget that R&D expenses also include salaries – a massive burden for start-ups burning cash to get their product to market and hopefully become profitable.
Meanwhile, agriculture – an industry subject to uncertainties due to factors like weather conditions, natural disasters, and commodity price fluctuations – can achieve greater stability with provisions that help manage cash flow and invest in sustainable practices.
This could be particularly impactful given Texas' role as a leading agricultural producer nationally. Unique to the 2017 bill, this tax package includes funding for natural disasters such as wildfires and ice storms that will be important to address future mitigation issues.
The Senate needs to build on the momentum the House delivered with its consequential vote. We look to Senators Ted Cruz and John Cornyn to lead this charge and propel the Tax Relief for American Families and Workers Act of 2024 to the finish line.
For families, employees and business leaders in Texas, there’s no time to waste – let your Senator know how important this tax bill is to Texas. It is essential for policymakers to consider renewing these measures, not just from an economic standpoint, but also from a political one.
Joe Biden is still on the ballot in November, and passing H.R.7024 is best way to keep his policies from damaging Texas any more than his administration certainly already has.
Aiden Buzzetti is the president of the Bull Moose Project.
