LOOKING AT TAX REFORM.

Author:Brock, Emily S.
Position:Congressional update
 
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As of mid-November 2017, the House Ways and Means Committee was marking up the tax reform bill, The Tax Cuts and Jobs Act (H.R. 1), and the Senate introduced its version of the bill. When the House committee is finished considering potential changes, the bill is expected to go to the floor for a vote before the full House of Representatives. We don't know if the bill will see changes before a floor vote, or whether it will pass the House, as support for the legislation is far from universal. The Senate bill was being marked up as of press time.

One of the primary issues of concern to state and local governments is the repeal of the state and local tax (SALT) deduction, which GFOA has been actively engaged with in recent months. On the individual side, the House bill proposes to eliminate the deduction for state and local income and sales taxes paid, and it would cap the local property tax deduction at $10,000 per itemizing taxpayer. The Senate bill would fully repeal the SALT deduction, although the House says it will not support a repeal. GFOA will continue opposing these changes, especially given the significant impact it would have on the ability of state and local governments to set tax...

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