CEO DATELINE - GOP tax bill changes sway association critics
CEO DATELINE - GOP tax bill changes sway association critics
- December 19, 2017 |
- Walt Williams
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Republican lawmakers have made changes to their proposed tax overhaul that addressed concerns raised by several associations, although some of those same groups still see the legislation as problematic.
Many business groups are in favor of the proposed package of tax cuts, which Congress appeared likely to pass this week. However, several associations and professional groups have spoken against earlier proposals to eliminate existing tax breaks that benefit their industries.
The American Institute of Architects was alarmed the Senate version of the tax plan would have restricted the ability of professional service providers like architectural and engineering firms to claim a 20 percent deduction available to pass-through entities. In addition, the House version of the bill eliminated a tax credit for the preservation of historic buildings.
Both provisions were absent in the version of the legislation that came out of conference committee.
"The AIA lobbied hard and successfully to improve this bill, and to ensure that architects continue to be major job creators in the American economy," AIA President Carl Elefante said.
Republicans also removed language taxing waived tuition for graduate students and eliminating deductions for student loan interest. The Association of Public and Land-grant Universities welcomed both changes.
"For students, the bill is significantly better than earlier proposals and we commend policymakers for making changes," APLU President Peter McPherson said.
However, like many groups, APLU did not get everything it wanted. The association said the bill's proposed increase in the standard deduction would lead to a decline in charitable giving by eliminating the tax benefit for doing so.
"As states have cut appropriations for public higher education, philanthropy has become an increasingly important means to support public higher education," McPherson said.
The American Hospital Association reported "mixed results" in its summary of the legislation. Lawmakers backed off a House proposal to eliminate tax-exempt private-activity bonds used to finance infrastructure projects like hospitals. However, the final version would eliminate the individual mandate, likely leading to millions of people going without health insurance.
"It is unfortunate that the important task of overhauling the tax code will erode health coverage for many," AHA said in a statement.
The National Association of Realtors had been among the most vocal opponents of the tax overhaul. Among other things, the association pointed to proposals to reduce the mortgage interest deduction. The final bill lowers the deduction from $1 million to $750,000.
In a statement, NAR President Elizabeth Mendenhall said "the overall structure of this bill poses problems for homeowners and the broader housing market," but improvement had been made.
"We are particularly pleased with the treatment of capital gains on the sale of a home and the preservation of deductions for second homes," she said. "We are also grateful that the positive changes for commercial real estate and real estate professionals from the Senate bill have survived."
The National Association of Home Builders—another vocal critic of the original tax plan—had not weighed in on the final version of the bill as of Tuesday.
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