July 16, 2018

Breaking News: House Passes Tax Bill

11/16/2017

House Passes Tax Bill

On Thursday, November 16, 2017, the U.S. House of Representatives passed their version of a tax plan adjusting the rates for certain businesses and individuals. One Voice has continuously lobbied on behalf of comprehensive tax reform for several years and applauds the House for moving the ball forward. While much work remains, simply passing a bill out of the House is a major victory for those supporting changes to the tax code. The Senate tax writing committee is finalizing its work this week, setting up a vote hopefully by the full Senate the week following Thanksgiving. Both chambers must reconcile the differences between the two bills, which they plan to do throughout December with the stated goal of sending a final bill to the White House by Christmas.

While most believe this is an aggressive timeline, it is important to note the sense of urgency among Congressional Republicans and the administration to show significant progress on their economic agenda. One Voice is actively lobbying policymakers to make sure the tax rates also benefit pass-through manufacturers, who make up nearly 75 percent of NTMA and PMA members. One Voice is also asking that lawmakers incentivize manufacturing in America by ensuring the tax code supports businesses that are investing in capital equipment and have significant expenditures that help grow their workforce and capabilities. While the final results remain unclear, a significant emphasis is also on the treatment of income for executives and retirees who for years have worked to build their manufacturing businesses.

The current House bill has a number of very generous provisions for manufacturing, especially those focused on investing in domestic production and equipment. The main differences between the House and Senate, as of now, are treatment of pass-through income and the treatment of earnings by those receiving business income vs. individual wages. Other differences between the House and Senate remain on deductions for state and local taxes paid, the treatment of passive income, and for how long the lower tax rates should remain in effect, among other areas.

Sources indicate both the House and Senate bills will continue to undergo significant changes over the coming weeks. While there are a number of encouraging provisions in each measure, One Voice is working behind the scenes with tax writers and leadership in both Chambers who are writing the legislation. Experts believe the final bill will continue to undergo significant changes as the White House and GOP Congressional leaders seek a compromise measure that can secure enough Republican votes to pass.

One Voice encourages its members to continue to reach out to PMA and NTMA through info@metalworkingadvocate.org or their respective associations to provide their feedback on the tax plans making their way through Congress. One Voice will continue to weigh in with policymakers and keep association members up to date in the coming weeks as we expect negotiators to decide most critical provisions in December.