Tax Reform Marches Forward
November 17, 2017
This week the US House achieved floor passage of H.R. 1—the Tax Cuts and Jobs Act. The measure was approved on November 16 by a 227-205 vote, entirely along partisan lines. The House version of comprehensive tax reform supports a more competitive corporate tax rate, creation of a territorial tax system and the repatriation of accrued overseas income. All these elements are consistent with AIA’s tax reform principles, something which was highlighted in a prior AIA press release.
The Senate Finance Committee also started mark-up of the companion comprehensive tax reform measure. The Senate version is similarly supportive of AIA’s tax principles but differs from the House-passed bill in a several key ways. The Senate bill includes a provision to repeal the individual insurance mandate which is a tax provision under the Affordable Care Act. As currently written, the Senate Finance committee’s bill would also delay the application of a permanent reduction of the current corporate tax rate from 35% to 20% by an additional year until January 1, 2019. AIA also released positive comments about the Senate efforts on November 9.
AIA will continue to aggressively advocate for a final tax bill that modernizes the current tax code and promotes the growth of manufacturing jobs and continued economic health in the aerospace and defense sector.