Today in Washington – September 7, 2018
September 7, 2018
Source: Jennifer White – Legislative Counsel
Tax Reform 2.0 Framework Released— Yesterday the House released a three-page plan for a second round of tax cuts (Tax Cuts 2.0), centered around (1) Promoting Family Savings, (2) Protecting Family Tax Cuts and (3) Growing Brand New Entrepreneurs. The plan would make individual tax cuts, as well as the $10,000 cap on state and local tax deductions, permanent. It would also expand retirement savings options for small businesses and allow start-ups to deduct more costs, building on the President’s Executive Order from last week.
Ways and Means Committee Chairman Kevin Brady has indicated his panel will meet to approve legislation next week and House Speaker Paul Ryan has said it will get a vote on the House floor before the end of the month. If the bill passes the House, it would require least 9 Democrats to support the bill in the Senate to pass.
IRS Releases Clarification for Business Tax Payers – The IRS released a statement this week that business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payment as business expenses. Read the statement here.
Appropriations Watch – Appropriators say they are close to a deal on a FY19 “minibus” that would fund energy, nuclear and veterans’ programs. Separately, the House agreed by voice vote yesterday on a motion to go to conference with the Senate on another “minibus” package containing Interior-Environment and Financial Services bills.