Washington, D.C (Nov. 6, 2017)—The Independent Community Bankers of America® (ICBA) today laid out the community banking industry’s perspective on tax reform legislation that the House Ways and Means Committee is taking up this week. In a letter to Chairman Kevin Brady (R-Texas) and Ranking Member Richard Neal (D-Mass.), ICBA President and CEO Camden R. Fine wrote that community bankers are encouraged by many provisions of the pro-growth Tax Cuts and Jobs Act (H.R. 1).
“On behalf of the more than 5,700 community banks represented by ICBA, I write to thank you for undertaking the critical and ambitious policy challenge of comprehensive tax reform,” Fine wrote. “ICBA and community banks strongly support your efforts to craft pro-growth tax reform.”
ICBA-supported provisions of the bill include the permanent 20 percent corporate rate, the lower 25 percent rate for passive shareholders in Subchapter S community banks, estate tax relief, repeal of the alternative minimum tax for individuals and corporations, and the permanent extension of the Section 179 deduction. ICBA and community bankers are particularly pleased that H.R. 1 does not repeal the deduction for business interest, but provides a workable safe harbor that will allow small businesses to continue to deduct their interest in full.
However, ICBA has significant concerns that the plan does not eliminate or curtail the generous taxpayer subsidies given to credit unions and Farm Credit System lenders, would limit deductions for Federal Deposit Insurance Corp. premiums, applies an unworkable formula for active shareholders of Subchapter S community banks, penalizes non-qualified deferred compensation plans, and terminates the new markets tax credit for low-income communities.
ICBA looks forward to continuing to work with Congress and the Trump administration on 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.