Prospects Dim for Year-end Tax Vehicle
GOP leaders say Democrats’ spending demands are creating conflict
Democrats’ spending demands are dimming prospects for a year-end tax package, according to House Ways and Means ranking member Kevin Brady (R-TX). Brady told POLITICO that if there is tax legislation, he hopes it would include extenders and technical corrections to the 2017 GOP tax law.
“I think it will be difficult to reach a year-end conclusion because, you know, the demands by some of the Democrats for up to a trillion dollars of new spending in return for the tax extenders is just, you know, not real world,” Brady said. “When they’re ready to come down to earth, we’d like to have a constructive discussion.”
The American Society of Association Executives (ASAE) and the UBIT Coalition, of which OSAE is a part, are hoping a year-end tax vehicle could include repeal of the 21 percent tax on the value of so-called fringe benefits, such as free parking or mass transit assistance, that nonprofits provide to employees. Repeal of this provision was included in a tax package advanced by the Ways and Means Committee in June.
Ways and Means Committee Chairman Richard Neal (D-MA) proposed paying for extensions of a slew of lapsed tax breaks by ending higher exemption levels for the estate tax at the end of 2022 instead of 2025 as currently scheduled. The package also included Democratic priorities like expanding both the Earned Income Tax Credit (EITC) and the Child and Dependent Care Tax Credit (CDCTC). The tax package has not been voted on by the full House.
Brady said Democrats’ impeachment proceedings are slowing down other legislative priorities.
“It seems like impeachment has knocked a bunch of things off of schedule for the Democrats,” he said.
This article was provided to OSAE by the Power of A and ASAE's Inroads.