Rep. Michelle Steel Sponsors Bipartisan Tax Relief

The bipartisan proposal would make permanent parts of the 2017 Tax Cuts and Jobs Act designed to spurn innovation.

One key piece of the 2017 Tax Cuts and Jobs Act is set to expire in 2025, but Rep. Michelle Steel (R-CA) is partnering with Rep. Joe Morelle (D-NY) in a bipartisan proposal to make the tax cut permanent and protect American innovators.

The bipartisan “Growing and Preserving Innovation in America Act” would make permanent a 37.5% deduction for income earned internationally on so-called intangible assets when that money is brought back to America. Intangible assets include copyrights, patents, and other intellectual property.

Lowering taxes on income earned overseas generally encourages individual Americans and corporations to invest dollars earned internationally in America.

“The TCJA’s competitive FDII rate ensures that American companies are encouraged to invest their profits here at home, creating jobs and developing new technologies that grow our economy,” Steel said in a statement.

Under Steel’s proposal, economists claim that money earned overseas would help grow the US economy rather than being trapped in foreign economies.

Steel has made tax relief for innovators and working families a key part of her work in Congress. Earlier this year she championed the Tax Relief for American Families and Workers Act which included enhanced child tax credits, strengthened Low-Income House Tax Credits and gave incentives to businesses to prevent outsourcing.

“This is a huge win for hardworking Americans who have seen the tax and spend cycle continue to grow for far too long,” Steel told the Orange County Register.

Over 40% of voters in California’s District 45 are first generation Americans many with continued international ties. Steel has represented California in Congress since 2020.