The House voted 227-205 to pass its comprehensive tax reform bill. The passage of the Tax Cuts and Jobs Act (H.R. 1) focuses attention on the Senate.
In a statement, ICBA said it is encouraged by the continued momentum for tax reform, citing pro-community bank provisions and others with which it has significant concerns.
ICBA said it supports the permanent 20 percent corporate rate, estate tax relief, and repeal of the alternative minimum tax for individuals and corporations.
However, ICBA noted its significant concerns with the treatment of Subchapter S corporations, including active shareholders in Subchapter S community banks.
“We will continue working with lawmakers to ensure it provides meaningful tax relief to Subchapter S community banks and addresses the inequity from the generous taxpayer subsidies given to tax-exempt credit unions and Farm Credit System lenders,” ICBA President and CEO Cam Fine said.
ICBA detailed its positions on both bills in letters to the House and Senate. Meanwhile, ICBA’s new issue brief on the tax reform debate offer the latest details for community bankers.
With Congress moving rapidly, ICBA continues urging Subchapter S banks to weigh in with ICBA’s Be Heard grassroots action center to protect the Subchapter S model.