Washington, D.C (Dec. 2, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released the following statement on today’s Senate passage of the pro-growth Tax Cuts and Jobs Act (H.R. 1).
“With the Senate’s passage of its tax reform bill, ICBA and the nation’s more than 5,700 community banks remain encouraged by the continued momentum for pro-growth tax reform. ICBA supports the tax relief provisions of the House and Senate bills, including lowering the top corporate rate from 35 percent to 20 percent, estate tax relief, individual rate relief, and reduction of the alternative minimum tax for individuals and corporations.
“Of particular interest to community banks, both the House and Senate bills limit deduction for business interest expense but create a carve out for small business borrowers and other businesses with lower interest expense. Both bills preserve current law taxation of non-qualified deferred compensation and mortgage servicing assets and allow a $10,000 deduction for property tax but otherwise eliminate the deduction for state and local tax. The Senate bill preserves the mortgage interest deduction, while the House bill would limit it to $500,000 of indebtedness on new home purchases but grandfather current mortgages.
“Notably, ICBA appreciates the additional attention the Senate gave to providing tax relief to our nation’s pass-through businesses, especially Subchapter S community banks. The Senate bill lowers the effective tax rate for Subchapter S businesses by providing a 23 percent deduction for qualified income.
“As the House and Senate proceed to conference, ICBA will continue to press to ensure the results are the best for community banks and the individuals and small business customers they serve.
“ICBA looks forward to continuing to work with the House, Senate and Trump administration on pro-growth tax reform.”
The Independent Community Bankers of America®, the nation’s voice for more than 5,700 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.