Tax Reform Marches Forward
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.