Federal Tax Reform Update
Nov 15, 2017
The House Ways and Means Committee passed the Tax Cuts and Jobs Act (H.R. 1) last week along party lines. leaders made key changes before passing it in committee like raising repatriation tax rates on corporate cash held abroad, restoring the adoption child credit and changing the bill’s treatment of “pass-through” businesses, which brought support to the legislation from the National Federation of Independent Business (NFIB) who had previously been unsupportive.
The Senate Finance Committee followed with the release of their version of the legislation. There are some significant differences in the two versions. The Tax Foundation released a helpful side-by-side comparison.
The inclusion of certain tax credits, like historical redevelopment and wind production, remain at odds in the two versions, which will eventually have to be ironed out. The Senate committee is currently marking up their version, while the full House is expected to hold a vote on their version before the end of this week.
The Economic Alliance supports tax reform that will simplify the code, lower rates for all businesses and encourage a pro-growth economy. Our current tax code is complex and antiquated, discourages innovation and investment, and generates uncertainty. We recently signed this letter with our colleagues from around the country to encourage lawmakers to continue forward with comprehensive federal tax reform.
Iowa Governor Kim Reynolds is said to be closely following federal tax reform as it will have an impact on her priority to see state tax reform is what is going to be an extremely challenging budget year for the state of Iowa.