Last week Senate Finance Committee Chairman Orrin Hatch (R-UT) kicked off his committee’s work on organizing the Senate’s tax reform plan by announcing five bipartisan working groups to explore the existing federal tax code and identify areas that are ripe for reform. The working groups are: Individual Income Tax; Business Income Tax; Savings and Investment; International Tax; and Community Development and Infrastructure. Each of the groups will work with the Joint Committee on Taxation to develop reform recommendations, aiming to assemble a report covering all five of the subject areas by the end of May. The final report will serve as a blueprint for Senate Finance Committee leaders to use in shaping tax reform legislation.
House Ways and Means Committee members will meet next week to discuss their own strategy for reform, although their efforts will be coordinated closely with those of the Senate Finance Committee. With Republicans controlling both chambers of Congress for the first time since 2006, and the White House proclaiming support for the overhaul, tax reform could be one of the few areas where Congress and the president reach agreement. As this effort unfolds, the GFOA will be working closely with our state and local association partners, such as the National League of Cities, United States Conference of Mayors, National Association of Counties, National Governors Association, National Association of State Treasurers, National Association of State Auditors, Comptrollers and Treasurers, International City/County Management Association, and others to advocate for our priority tax provisions, including the tax exemption on municipal bond interest and the state and local tax deduction. Most importantly, we will also be engaging you, our members, to assist us in preservation of these important tax provisions.
If you have questions or need additional information on our advocacy campaigns related to this effort, please visit our federal government relations page.