SALT Deduction Preservation Outreach Is Critical
The U.S. House of Representatives voted on Thursday to pass the Senate-passed budget resolution, which could potentially pave the way for tax reform. In doing so, the measure formally kicked off the tax reform effort, since the budget resolution will send reconciliation instructions to the tax-writing committees with the hopes of passing tax reform via a simple majority.
Over the past few months, GFOA has led efforts and employed its widely cited research report, “The Impact of Eliminating the State and Local Tax Deduction,” to educate House members about the impact that eliminating the state and local tax (SALT) deduction would have. GFOA’s Federal Liaison Center has received some positive news from some Congressional representatives that preserving SALT is a priority – but representatives in California, Illinois, Ohio, and Pennsylvania need to hear from you! Reach out, use GFOA’s talking points, and use congressional district impact data to tell your jurisdiction’s story! Let us know what you hear. GFOA will continue to report on developments as they occur.
Treasury Scraps Burdensome Political Subdivisions as Part of Proposed Amendments
The Treasury Department plans to withdraw proposed Section 103 regulations that would have added requirements to be considered a “political subdivision” for purposes of issuing tax-exempt municipal bonds. The requirements, which would have imposed enhanced standards to show a governmental purpose and governmental control, would have been costly and burdensome.