ICYMI: McIntosh & Yass WSJ OpEd: “Full Expensing Boosts Economic Growth”

Will Mitola  |   June 4, 2025

Washington, D.C. – In case you missed it, Club for Growth President David McIntosh and Susquehanna International Group cofounder Jeff Yass published an op-ed in the Wall Street Journal on full expensing of capital. The piece urges Congressional Republicans to expand provisions in President Trump’s Tax Cuts and Jobs Act to include investments in structures such as factories to grow the nation’s GDP and accelerate job creation.

Click here to read the full piece in the Wall Street Journal from Club for Growth President David McIntosh and Susquehanna International Group cofounder Jeff Yass.

 

EXCERPTS:

Full Expensing Boosts Economic Growth

Congress can make up for a missed 2017 opportunity to bolster economic growth.

By David McIntosh and Jeff Yass

Wall Street Journal

The most efficient way for Congress to unleash economic growth is to establish full and permanent expensing—a policy allowing businesses to deduct immediately the cost of their investments in capital assets including machinery, equipment and buildings. The 2017 Tax Cuts and Jobs Act tried to achieve this goal, but its provision excluded investments in factories and other buildings and began phasing out in 2023.

Republicans must not make the same mistake again. The “one big, beautiful bill” recently passed by the House includes full expensing, but it would expire at the end of 2029. The Senate should make this provision permanent.

…

Permanent pro-growth tax policy may not be a top-level concern for Fortune 100 companies, but it’s vital for venture-capital firms and new businesses seeking to expand via capital investment. Full expensing would also encourage larger businesses to move their manufacturing to the U.S., possibly igniting an American industrial renaissance.

Current law requires U.S. manufacturers to depreciate the cost of their investments in new factories over 39 years. This means only a small portion of the investments can be deducted from taxes each year. Tax benefits are further eroded due to inflation and the time value of money. This approach dissuades capital investment and penalizes American companies compared with foreign competitors. Full expensing for investments in new buildings would remove this artificial penalty.

…

Republicans currently control the House, Senate and White House. Senators must take this opportunity to amend the House legislation and pass a tax bill that permanently generates economic growth. The U.S. economy and American citizens will benefit significantly.

Mr. McIntosh is president of the Club for Growth. He served as a Republican U.S. representative from Indiana, 1995-2001. Mr. Yass is managing director and a co-founder of Susquehanna International Group.