The House and Senate are discussing a compromise tax bill and hope to get it to President Trump’s desk by the end of the year. Alabama’s two U.S. senators voted for the Senate version and all Republican members of Alabama’s House delegation voted for their version.
The U.S. Chamber of Commerce advises that both versions would lower rates for all businesses, shift the United States to a more globally competitive territorial tax system, and lower individual taxes. “The decades-long drive toward meaningful tax reform is closer than ever to becoming a reality,” U.S. Chamber President and CEO Tom Donohue said.
The Chamber urges member advocacy to improve major line items in both of these bills, such as the Senate provision regarding reinstatement of the corporate alternative minimum tax, and getting the best deal that will protect pass-through businesses.
Tax reform is a must in order to keep the new economic growth that is lowering unemployment, creating more jobs, and returning investment to the United States.
Check the National Association of Manufacturers’ link for information on how tax reform affects your neighborhood and your state, as well as an easy-to-use tool to contact your federal elected officials.
NAM LETTER TO CONFEREES URGES CORPORATE TAX RATE OF 20 PERCENT
Politico Pro reports that the National Association of Manufacturers sent a letter this week urging budget conferees charged with reconciling the House and Senate tax bills “to maintain a 20 percent corporate rate in tax reform.”
It quotes the letter saying, “Manufacturers would have significant concerns with proposals that would increase the corporate tax rate beyond 20 percent.” The NAM voiced “serious concerns” about the Senate’s preservation of the corporate Alternative Minimum Tax provisions, writing that it “would essentially eliminate the [research and development] credit” for some manufacturers. [Politico Pro is a paid website, but NAM members wanting to read the full article for free may contact NAM Account Manager Molly Fluet.]
Click here for a summary of the bill including the 20 percent tax cap on businesses.
ALABAMA BUDGET EXTENSION LEADERS ARE QUOTED
Congress has through today to avoid a government spending halt, but it has been considering another continuing resolution to keep spending legal through Dec. 22. House Republicans and Democrats are expected to support a spending extension as are Senate Democrats and Republicans, Roll Call reported.
The Senate may seek to consider a spending plan into January that would include the defense funding bill, according to Republican Sen. Richard C. Shelby of Alabama, a senior appropriator.
“The defense bill is a big engine,” Shelby said. “It’ll take anything with it.”
Although no agreement has been reached, the plan involves first passing a spending bill by Dec. 22 that would fully fund defense programs through the end of the fiscal year and use another continuing resolution to keep the remaining agencies open until an omnibus measure can be drafted, Roll Call reported.
“They don’t have a choice,” said Alabama Rep. Bradley Byrne of Fairhope, one of the Republican Study Committee members who’s been working on the proposal. He confirmed the plan would be for the House to pass it and leave.
“Once we pass that bill, the total burden for funding the government is on the shoulders of the United States Senate,” he said. “And they will either shoulder that burden or they will not.”
The CR portion is expected to last until late January, at which time the goal is to pass an omnibus measure to fund those remaining agencies through the end of the fiscal year, members involved in the discussions said. The defense portion would include language to raise the defense spending cap from $549 billion to around $626 billion, Roll Call reported.
IN CASE YOU MISSED IT
Trump to Release Infrastructure Plan in January, Official Says
Bloomberg (Niquette 12/7) “President Donald Trump plans to keep pushing his legislative agenda in 2018 by releasing his long-promised infrastructure plan in early January, a senior administration official said.
“The president aims to release his proposal to upgrade roads, bridges, airports and other public works before the Jan. 30 State of the Union address,” said the administration official, who spoke on condition of anonymity because the details aren’t public.
“The White House plan is essentially complete, and Trump recently reviewed it,” the official said. It calls for allocating at least $200 billion in federal funds over 10 years to spur at least $800 billion in spending by states, localities and the private sector. The guiding principle of the plan is to shift responsibility for funding from the federal government to states and localities — which own or control most assets — by providing incentives for them to generate their own sustainable funding sources and work with the private sector.”