00:00Mr. Estes.
00:04Thank you, Mr. Chairman, for organizing another round of field hearings.
00:08It's fitting that we're here today in the Ronald Reagan Presidential Library
00:11after Republicans passed the one big, beautiful bill.
00:15This historic legislation builds on President Reagan's legacy
00:18of lowering the tax burden on Americans so they can keep more of their hard-earned money.
00:23Through field hearings and tax teams, we spent hundreds of hours
00:26traveling the country to talk to Americans to gather their input.
00:30After years of work, the one big, beautiful bill will put America first,
00:33delivering immediate tax relief to small businesses, farmers, producers, and working families.
00:39Small businesses are critical to our economy
00:41and provide an honest living for Americans and their families.
00:45Ensuring our tax code is fair and encouraging growth is a priority to Republicans in Congress.
00:50A significant component of the one big, beautiful bill
00:53is the permanent extension and enhancement of the 20 percent small business deduction.
00:59With this deduction being made permanent, small businesses will be empowered to reinvest
01:04in their operations, hire more workers, and contribute to local economy.
01:08Small businesses will also benefit from the doubled small business expensing
01:12of $2.5 million because that will enable them to invest in their employees
01:16and grow their businesses.
01:18Part of ensuring generational growth in business,
01:21whether it's a shop in a small town or a family-owned farm in Kansas,
01:24we're making sure families aren't overburdened by taxes and government red tape.
01:29Our legislation also raised and made permanent the death tax exemption,
01:33which means family-owned businesses and farms will continue to be kept in the family
01:37instead of assets needing to be sold solely to pay taxes to the government.
01:42A key provision that Chairman Smith and I worked on was a permanent restoration
01:46of immediate expensing for domestic research and development, or R&D.
01:51Supporting American innovation and encouraging investment right here at home is critical.
01:55The R&D expensing provision expired in 2022,
01:58which discouraged businesses from investing in job-creating activity,
02:02and we saw plummeting in the investment that was being made after 2022 expiration.
02:07Making this provision permanent will boost our economy and lead to more job growth.
02:13One of the things we can't lose sight of is that three-quarters of R&D spending are for wages.
02:19By giving companies certainty to invest in research here and in the United States,
02:23we'll see more manufacturing jobs and a stronger, more competitive America.
02:28Mr. Timmons, you've highlighted how critical innovation is to our manufacturers,
02:31especially given that they're responsible for 53 percent of all private sector R&D,
02:35even though they just make up 10 percent of the GDP.
02:39Can you speak on what kind of impact that has on the workforce?
02:42For instance, how many employees are you able to hire because of these investments in R&D?
02:47Well, thank you for the question, Mr. Estes.
02:50I think – look, I think innovation is one of the great competitive advantages
02:57that we have here in the United States.
02:58And when that provision expired a few years ago, to your point,
03:04we saw a reduction in investments in research and development.
03:08Why is that important?
03:09Well, China has a 200 percent research and development tax credit for their –
03:16for the investments made in that area.
03:18And I know the work that Mr. Moran does on that committee, on the select committee,
03:25we have some very serious concerns about being able to compete with China.
03:31China simply doesn't view the world the same way we do.
03:35So I was very pleased that through your work and others on the committee,
03:38we were able to get that credit renewed.
03:41Mr. Fulton, you've highlighted how the corporate tax rate
03:44and immediate expensing for research and development for – and for equipment
03:48played a crucial role for Robinson Helicopter.
03:52Can you share your thoughts on how the new provision
03:54allowing immediate expensing of manufacturing facility costs
03:57will impact your company's growth and investment here in the United States?
04:01Thank you for the question.
04:04Thank you for your question.
04:06These provisions all capture the core aspects of what a manufacturer must do to compete.
04:11We must innovate new technologies, develop production,
04:16and deploy production processes for those new technologies.
04:20And then that follows with construction of facilities that can house the production processes
04:25for those technologies and the workers to actually run those machines.
04:29So the provisions really reinforce a fully coupled research, manufacturing,
04:34and marketing pipeline that allows us to be globally competitive
04:37with a 100 percent American-made product.
04:40Yeah, well, thank you.
04:42You know, without our work in Congress on the one big, beautiful bill,
04:45Main Street and rural businesses would have faced a 43.4 percent federal tax rate
04:50if the small business deduction expired at the end of this year.
04:53Now, small businesses across our nation will continue to operate
04:56and grow in their local community.
04:58With Republicans in Congress and President Trump back in the White House,
05:01businesses, big and small, are going to see growth in hiring, wages, and prosperity.
05:05We saw those results when TCGA was passed during President Trump's first term,
05:09and now in his second term, we've made many of those provisions permanent.
05:13As we move forward, we remain committed to cutting unnecessary spending
05:16as we demonstrated with the first rescissions package last week.
05:20In tandem, the one big, beautiful bill is pro-growth policy.
05:23America is not only on the path to renewed strength,
05:25but will continue to be the very best place in the world to start, grow, and sustain a business.
05:30Thank you all for being here, and I yield back.
05:32Thank you, Mr.
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