Lanhee J Chen, Columnist

Dave Camp's Good Tax Policy Is Good Politics, Too

Dave Camp's decision to try to make permanent the bonus depreciation provision is a good step in an election year, when comprehensive reform of the tax code isn't possible.

May 28, 2014 at 9:13 PM UTC

By Lanhee J Chen

Lanhee Chen is a research fellow at the Hoover Institution who also teaches public policy at Stanford University. He was the policy director of Mitt Romney's 2012 presidential campaign. Chen was a senior official at the U.S. Department of Health and Human Services in the George W. Bush administration. He practiced business litigation with the law firm of Gibson, Dunn & Crutcher LLP and served as the Winnie Neubauer visiting fellow in health policy studies at the Heritage Foundation. Chen earned his doctorate and master's degree in political science from Harvard University, his law degree from Harvard Law School and his bachelor's degree in government from Harvard College.

House Ways and Means Committee Chairman Dave Camp is focusing on making permanent some stimulus-related, temporary tax breaks. Photographer: Chip Somodevilla/Getty Images — House Ways and Means Committee Chairman Dave Camp is focusing on making permanent some stimulus-related, temporary tax breaks. Photographer: Chip Somodevilla/Getty Images

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In this election year, it’s no surprise that House Ways and Means Committee Chairman Dave Camp’s effort to reform the federal tax code has met significant resistance both on Wall Street and in Washington. Although the Michigan Republican remains committed to a fundamental revision of the system, he is now pursuing a different course: making permanent some of the temporary, but pro-growth, elements of the existing code.

One of those changes will be unveiled Thursday, when Camp's panel considers legislation sponsored by Republican Congressman Pat Tiberi of Ohio. The measure would make permanent a provision in the tax code that expired in December. It allows businesses to deduct half of their capital investments in the year they are made -- instead of delaying those deductions over time. Known as bonus depreciation or immediate expensing, this provision has helped fuel the formation and creation of businesses during the tepid economic recovery in the wake of the financial crisis.