WHAT IS HAPPENING IN WASHINGTON
Yesterday, October 26, the House of Representatives passed a budget for fiscal year 2018, following Senate passage last week. The 2018 budget is the first step in moving forward on comprehensive tax reform through the legislative “reconciliation” process-a measure allowing for Senate passage of a bill through a simple majority (i.e., partisan) vote.
We expect the tax reform process to proceed as follows, subject to change as the process unfolds:
|November 1||House Ways and Means Committee releases tax reform bill text|
|Week of November 6||House Ways and Means Committee consideration of bill text (i.e., Committee “markup”)|
|Week of November 13||House Floor consideration of bill text|
|November/December||Tax reform bill moves to Senate; possible Senate markup week of November 13|
The White House and Republican leadership have stated their intention to pass tax reform legislation by year end.
IPA ADVOCACY ON BEHALF OF ITS MEMBERS
The IPA has made numerous visits to Capitol Hill to meet with Congressional leadership and Committee staff to discuss our tax reform priorities.
We have urged Congress to:
(1) exclude real estate from the immediate expensing provision;
(2) provide an industry-based exclusion from the net interest expense limitation proposed;
(3) retain Section 1031 of the Code to preserve the ability to continue an investment in like-kind property.
The IPA also continues to coordinate our efforts with industry coalition partners to amplify our collective voice on these important issues. We have been actively involved throughout each step of the process, and will continue our strategic advocacy as tax reform legislation moves through Congress.
Once the bill text is released, the IPA’s tax reform team will review the bill and determine its impact on our members. We will continue to communicate with IPA membership at this critical time.
BACKGROUND ON TAX REFORM
Congress began working on comprehensive tax reform following the release by President Trump and Republican leadership on September 27, 2017 of the “Unified Framework for Fixing Our Broken Tax Code”. This document outlines the overarching principles and significant proposed revisions to the current U.S. tax code, and serves as the framework for Congressional leadership in drafting comprehensive tax reform legislation.