How Are Industry Advocates Responding to GOP Tax Plan?
After a one-day delay, House Republicans, led by Speaker Paul Ryan and Ways & Means Chair Kevin Brady, unveiled their plans for a far-reaching tax reform strategy. The plan, entitled “Tax Cuts & Jobs Act”, is sure to unleash a flurry of lobbying and advocacy campaigns in the capital over the course of the next two months. This page will update as trade associations and industry advocates publicly state their stance.
In Favor:
National Retail Federation (NRF): “President Trump wants to sign tax reform into law by Christmas, and we think that would be the perfect present for the American people and the U.S. economy.”
Business Roundtable (BRT): “While the tax reform bill released today deserves close analysis, it is significant progress toward achieving these goals. Congress and the Administration clearly appreciate the importance of getting pro-growth tax reform finished, how it will improve the economic security of all Americans and how it will give American companies the ability to compete equally in the global economy. We support this tax reform effort because it is good for all Americans.”
Securities Industry and Financial Markets Association (SIFMA): “Today is another step towards significant tax reform. There is much to review in Chairman Brady’s bill and we look forward to providing our thoughts as the process moves forward, but we remain committed to the ultimate goal of a more efficient, pro-growth tax code.”
United States Chamber of Commerce: “This bold tax reform bill is exactly what our nation needs to get our economy growing faster. A lot of work remains to be done to get the exact policy mix right and move from a legislative draft to an enacted law. We share Chairman Brady’s commitment to permanent reform because temporary tax relief simply will not produce the pro-growth environment we all desire. The business community stands ready to be an active partner with lawmakers over the coming weeks — and every step of the way — as we push to complete a re-write of our outdated tax system.”
National Association of Manufacturers (NAM): “Today is an awesome day in America thanks to this grand slam for hardworking manufacturers and the U.S. economy. The proposal is a guaranteed path to surge investment, jobs and economic growth that will lead to better lives for every American”
American Petroleum Institute (API): “Today the House Ways & Means Committee took a bold step to modernize the nation’s tax code to sustain U.S. economic growth, spur strong energy investment, and create American jobs and we commend Chairman Brady for his tremendous leadership on this issue. The last comprehensive update to the U.S. tax code was in 1986 and significant proposals, like lowering the corporate tax rate and strong cost-recovery provisions, will help ensure that our tax system is smart, fair and pro-growth to benefit American consumers, businesses, and the economy.
As this process continues and API and its members review in greater detail the 429-page bill, the oil and natural gas industry stands ready to work with Congress and the administration to enact strong, pro-growth tax legislation to ensure that our industry remains a major driver of economic growth, investing billions each year in the U.S. economy and supporting over 10 million U.S. jobs.”
Financial Services Roundtable (FSR): “Meaningful tax reform will unleash needed economic growth and benefit more Americans. As the legislative process moves forward, we are committed to working with policymakers to push a simpler, fairer and more modern tax code over the finish line.
FSR is reviewing the details of the proposal outlined today to ensure it meets the needs of businesses and consumers to grow the economy.”
National Association of Broadcasters (NAB): "Local broadcasters applaud today’s House Ways and Means Committee introduction of comprehensive tax reform legislation that will grow America’s economy, specifically their decision to retain the full and immediate deductibility of business advertising expenses. Study after study has shown that advertising is a driving engine for economic growth, sustaining and supporting millions of high-paying American jobs, and today’s legislative framework recognizes those important benefits. NAB looks forward to working with members on both sides of the Capitol towards passage of comprehensive legislation that modernizes the tax code to the benefit of American businesses and families.”
Club For Growth: “There are lots of components to praise in the House’s tax legislation, like immediate expensing for businesses and cutting the corporate tax rate. But there are other things that were added at the last minute that will require further analysis and improvement. For example, the bill does not do enough for small businesses, and by restoring the 39.6 percent tax rate on some taxpayers, the legislation effectively punishes success and caves to the Democrats’ class warfare rhetoric.
Fortunately, the Senate will have an opportunity to improve upon the shortcomings in the House bill. Club for Growth is eager to continue working with Congress to implement the most pro-growth tax plan in our nation’s history.”
Credit Union National Association (CUNA): “We thank the House for taking this first step in needed tax reform, and like those who are pushing toward reform, CUNA, Leagues and credit unions are committed to building and supporting a strong middle class in this country. As of now, the credit union tax status remains unchanged in this bill and the bill looks good from a credit union perspective, but this is an ongoing process and change can happen anytime. CUNA will be thoroughly reviewing the bill and remains engaged with both chambers of Congress as this process continues, ensuring policymakers are fully aware of the credit union difference in the financial services marketplace and in the lives of our 110 million members.”
Biotechnology Innovation Organization (BIO): “BIO applauds Chairman Brady and the House Ways & Means Committee for their dedication to pro-growth tax reform. Tax reform presents a unique, historic opportunity to stimulate American investment, support job creation, and promote life-saving innovation. The Tax Cuts and Jobs Act would lower America’s corporate tax rate, maintain the R&D Tax Credit, and move the U.S. to a territorial tax system, which will make the U.S. more competitive on the world stage and support domestic manufacturing and job creation. This reform is vital to maintaining American leadership in biotechnology innovation.
As Congress debates and refines this important legislation, we look forward to working with lawmakers to ensure that our nation’s tax code most effectively encourages innovation, investment and American entrepreneurship. This would include maintaining the Orphan Drug Tax Credit, and the inclusion of incentives for pre-revenue innovation and for the development of advanced biofuels, renewable chemicals, and biobased products.”
Entertainment Software Alliance (ESA): “Igniting greater economic opportunity and innovation, today’s tax reform proposal promises to boost the US tech sector. For the 2,600 US-based video game companies competing in the $100 billion worldwide video game market, a competitive, pro-growth tax system that encourages IP development and investment in US jobs is imperative. We commend Majority Leader McConnell, Speaker Ryan, Chairman Hatch, Chairman Brady, Secretary Mnuchin, and Director Cohn for their diligence in crafting this proposal and look forward to working with all policymakers as the effort to enact tax reform moves forward.”
Retail Industry Leaders Association (RILA): "America's retailers pay among the highest effective corporate tax rates among all industries, which is why retailers are committed to reform that lowers rates for retailers and the customers they serve. While we continue to review the details, we are strongly encouraged by the House proposal to reduce taxes on the middle class and permanently lower the corporate tax rate to 20 percent. Tax reform that works for American businesses and families is vital to helping our economy grow. We look forward to working with Congress and the Administration to pass reform that works for retail, our customers and the economy,"
Against
National Federation of Independent Business (NFIB): “The National Federation of Independent Business is unable to support the House tax reform plan in its current form. We will work with Chairman Brady to make the necessary corrections so that the benefits of tax reform extend to all small businesses. This bill leaves too many small businesses behind. We are concerned that the pass-through provision does not help most small businesses. Small business is the engine of the economy. We believe that tax reform should provide substantial relief to all small businesses, so they can reinvest their money, grow, and create jobs.”
National Association of Home Builders (NAHB): “The House Republican tax reform plan abandons middle-class taxpayers in favor of high-income Americans and wealthy corporations. The bill eviscerates existing housing tax benefits by drastically reducing the number of home owners who can take advantage of mortgage interest and property tax incentives.
And capping mortgage interest at $500,000 for new home purchases means that home buyers in expensive markets will effectively lose this housing tax benefit moving forward.”
National Association of Realtors (NAR): “We are currently reviewing the details of the tax proposal released today, but at first glance it appears to confirm many of our biggest concerns about the Unified Framework. Eliminating or nullifying the tax incentives for homeownership puts home values and middle class homeowners at risk, and from a cursory examination this legislation appears to do just that. We will have additional details upon a more thorough reading of the bill”
