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PATH is only one step in meaningful tax reform

by Nigel Travis - 01/28/16 7:00 AM ET

As 2015 came to a close, Congress and the Obama administration came together in the spirit of bipartisanship to pass the Protecting Americans from Tax Hikes (PATH) Act of 2015, an extensive tax package that provides critical benefits for businesses that will make a significant impact in the New Year and beyond.

As the chairman and CEO of Dunkin’ Brands, the franchisor of Dunkin’ Donuts and Baskin-Robbins, I applaud Congress and President Obama for the passage of these permanent extensions of key tax provisions and the long-term extension of others. The PATH Act will help business owners, especially small business owners like our franchisees, plan for the future with greater certainty, without the need for annual approval of a last minute tax extenders bill by Congress. And greater certainty makes it easier for small businesses to grow and contributes to healthy local economies.

{mosads}In the restaurant industry in particular, PATH encourages growth by freeing capital that can be reinvested, as owners can deduct greater amounts of the cost of financed purchases. A permanent depreciation schedule for construction and improvements provides stronger assurance about the tax impact of such investments.

However, PATH is only one step towards truly effective, long-term meaningful tax reform that will provide relief to small business owners nationwide. I strongly encourage leadership in both the House and the Senate to seize upon this momentum and in the spirit of bipartisanship to create more comprehensive tax overhaul for the future. Among other initiatives, lawmakers should be working to simplify the tax code to make it easier for small business owners, as well as the general public, to navigate. And certainly, lowering the overall corporate tax rate, while also reforming the tax rate assessed on small business owners, will spur economic growth.

With all the many headwinds we face in an increasingly competitive global marketplace, Congress has an opportunity to make significant changes to the tax code in America that will have positive implications for our country for generations to come.

The PATH Act helped set the course. Now let’s follow it through.

Travis is chairman and chief executive officer of Dunkin’ Brands.