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NTU Vote Alert: Tax Reform Amendments

by Thomas Aiello / /

National Taxpayers Union Vote Alert

***This is the first of several possible communications to the Senate NTU intends to make during the course of the tax reform debate. ***

As the Senate considers H.R. 1, the “Tax Cuts and Jobs Act,” NTU urges all Senators to vote as follows on key amendments:

  • “YES” on Ernst #1588: This amendment eliminates deductions members of Congress claim for their expenses while serving in D.C., up to $3,000. Members should not receive special treatment through deductions that are not available to their own constituents.

  • YES” on Retroactivity “Fix” Amendments (Inhofe #1599, Blunt #1716): NTU generally supports allowing taxpayers time to adjust to and plan for new provisions that may result in revenue increases. These amendments would address one or more aspects of retroactivity regarding deductions of corporate interest.

  • “YES” on Paul #1623: This amendment repeals the “Foreign Account Tax Compliance Act (FATCA).” FATCA impacts millions of Americans with extensive reporting requirements and arduous penalties and will soon cost taxpayers more in compliance costs than it brings in.

  • “YES” on Daines #1634: This amendment would refund the millions of taxpayers who paid Obamacare penalties in 2014 and 2015. It is estimated that over that time 14 million taxpayers paid over $4.5 billion in penalties to the federal government.

  • “YES” on Thune #1657: This amendment would provide for the full and permanent repeal of the estate tax. The “Death tax” as it is commonly referred, places an enormous burden on entrepreneurs and causes job loss when farmers or family-owned small businesses don’t have the assets to pay their inherited tax bill.

  • “YES” on Barrasso #1687: This amendment repeals the costly health insurance tax in section 9010 of Obamacare. The nonpartisan Joint Committee on Taxation estimates that by 2022 the tax will total over $100 billion. This tax directly impacts small businesses in their ability to create jobs and grow the economy.

  • “YES” on Cruz #1725: This amendment broadens 529 education savings accounts so that they can used in K-12 education and home schooling expenses, up to $10,000 per child. This change will give parents the discretion to provide the education they want for their child.


 

  • “NO” on Collins #1590 & #1591: Instead of repealing it, these amendments would cap the state and local tax deduction at $10,000 and would be paid for by raising the corporate tax rate and top individual rate. Tax reform should completely eliminate this deduction because it encourages state and local governments to raise taxes higher than they would without it. Raising the corporate and individual rate will also negatively impact the pro-growth provisions of this bill.

  • “NO” on Rubio #1605, #1606, #1641 & #1642: These amendments would increase the refundability of the expanded Child Tax Credit and would be paid for by raising the corporate tax rate. A higher rate would undermine the bill’s most critical pro-growth provision, thus resulting in fewer new jobs and smaller pay increases for working families.

  • NO” on Carper #1693: This amendment would keep the estate tax exemption at its current level. The estate tax places an onerous burden on job creators and creates serious economic disruption when farmers and family-owned small businesses don’t have the liquid assets to foot the bill.

  • “NO” on Kaine #1704: This amendment would restore the alternative minimum tax instead of fully repealing it, as is proposed. This tax impacts over 4 million taxpayers every year, the majority of them being in the middle class. Its repeal will mean tax relief for millions of Americans across the country.

  • “NO” on amendments to increase corporate tax rate: NTU urges all Senators to oppose amendments that raise the proposed corporate tax rate as a pay-for for other provisions, including Brown #1643-#1655, #1661, and Bennet #1681 & #1682.

Roll call votes on the above amendments to H.R. 1 will be included in our annual Rating of Congress.

As always, NTU reserves the right to include other votes not listed in our annual Rating and as a reminder, we strongly urge Senators to support pro-growth tax reform and vote “YES” on the underlying bill.

If you have any questions, please contact NTU Policy and Government Affairs Associate at Thomas.aiello@ntu.org