Brady Open to Extenders, Technical Fixes
Errors in the 2017 TCJA still await Congressional corrections
Before House Republicans slip into the minority next year, House Ways and Means Committee Chairman Kevin Brady (R-TX) is preparing legislation to fix the “retail glitch” and other errors in last year’s tax law, along with a tax extenders package.
“We are prepared and ready if there is an appetite to move some of these things,” Brady told reporters Nov. 13.
The so-called “retail glitch” refers to a section of last year’s tax law meant to allow companies to immediately write off the cost of certain business investments, including internal improvements to their stores. Due to a drafting error, the law currently forces companies to deduct those costs over periods as long as 39 years. Brady said the package he is drafting includes between 70 and 80 fixes in the 2017 tax law.
There could be bipartisan interest in making some tax extenders permanent while phasing out others, but House Democrats may prefer to wait until next year when they have a majority in the next Congress and more leverage in what ends up in a bill.
Whatever is discussed during the lame duck, it probably won’t include the package of bills known as “Tax 2.0” that among other things would make the individual tax cuts in last year’s Tax Cuts and Jobs Act (TCJA) permanent. The House cleared this package back in September but it was dead on arrival in the Senate. House Democrats will want to set their own tax agenda when the 116th Congress is seated in January.
This article was provided to OSAE by the Power of A and ASAE's Inroads.