WASHINGTON–Response by credit unions to the House’s tax reform plan has been generally positive, primarily because elimination of the CU tax exemption has not been included among means for providing new revenue.
The CU trade group reaction can be found here.
Among some of the other responses to the tax reform plan were these:
- Financial Services Institute President and CEO Dale Brown issued a statement saying, “We are very encouraged that this draft protects the tax incentives for retirement accounts. In addition to retirement savings incentives, FSI has long supported tax reform that safeguards the important role of independent contractors in our economy, and provides equitable treatment of pass-through entities operated by financial advisors. We look forward to working with members of Congress and the administration throughout this process to ensure the final tax reform bill achieves these purposes.”
- Keith Hall, president and CEO of the National Association of the Self-Employed, said in a statement, “The most precious resource for America’s small business community is their time – time to operate, time to save, time to grow, and time to create more new jobs. Any tax reform proposal that seeks to promote a more simplified and efficient tax code will ultimately save small businesses time and money, and create the economic growth that only small business can sustain. The House GOP tax proposal released today is a great step in simplifying the burden of overall tax compliance. Reducing the number of tax brackets from seven down to four, reducing the number of itemized deductions while increasing the standard amount, and eliminating the alternative minimum tax and the estate tax will all provide significantly easier tax returns and easier tax planning for small business owners.
“The reduction of overall tax rates, including the tax on small business income and the aggressive expensing of new business equipment, can provide needed capital for small businesses to expand their operations and create even more needed jobs for our communities,” Hall continued. “Throughout this process, we are committed to providing a voice for America’s smallest businesses, those ‘Mom and Pop shops’ along every Main Street in America with 10 or less employees.”
- The American Council for Capital Formation released a statement saying,“The tax bill released today is three decades in the making and leaders on Capitol Hill and the White House should be commended for unveiling a pro-growth tax reform that will help pave the way for new job creation, higher wages, and sustained economic prosperity. Moving forward, a critical feature that must remain in any final bill is lower and permanent tax rates for large and small businesses. As a result, not only will businesses be able to invest more capital but they will have more to spend on their employees which is critical given that labor bears the majority of the corporate tax burden. Lawmakers should ensure that transitioning to a competitive territorial tax system advances as well. Today, the U.S.’s worldwide tax system levies tax on all income earned by U.S.-based companies, regardless of where that income was earned, placing domestic American companies at a significant disadvantage relative to our foreign competitors. Congress must also make sure the final tax reform bill does not levy discriminatory or punitive taxes on robust sectors of the economy. Lawmakers should not apply preferential treatment on any economic sectors, and they should make sure that the tax code does not pick winners and losers.”