Representatives Should Support Updated Tax-IRS Reform Package

NTU urges all Representatives to vote “YES” on H.R. 88, the “Retirement, Savings, and other Tax Relief Act” and “Taxpayer First Act” package. This tax and Internal Revenue Service (IRS)  reform legislation prioritizes free-market tax policies, would provide real cost savings and relief to consumers, and would strengthen protections for taxpayers.

Further delaying the job-killing medical device excise tax, the so-called “Cadillac” tax on certain high-end health insurance policies, and the health insurance tax would all reduce costs for consumers. Similarly, it is smart to repeal the indoor tanning tax. The tanning tax has profoundly hurt small businesses, and with them, a significant population of consumers who rely on indoor tanning for legitimate health purposes.

H.R. 88 would also make a number of essential technical corrections to the Tax Cuts and Jobs Act (TCJA). Importantly, it would fix a drafting error that limited cost recovery for a Qualified Improvement Property (QIP). The bill would codify TCJA’s intent to assign QIP with a quicker, 15-year cost recovery period and 100 percent bonus depreciation, rather than prolonging the recovery period.

In addition, Division B would address many long-standing IRS issues: creating a new Independent Office of Appeals, clarifying taxpayers’ right to appeal, bolstering protections against wrongful IRS asset seizure, improving services and protections for moderate-income taxpayers, prohibiting the use of non-government employees in witness examinations, improving customer services, making permanent the Free File Alliance program, and requiring the IRS to develop a comprehensive restructuring plan. These bipartisan reforms would bolster the rights of taxpayers who would otherwise be vulnerable to increased costs and IRS mismanagement.

Roll call votes on H.R. 88 will be significantly-weighted in NTU’s annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.