OSCPA supports budget resolution, tax reform in letter to Congress

OSCPA staff report

OSCPA has joined a coalition of associations urging Congress to quickly pass a budget resolution with reconciliation instructions that would make tax reform a reality.

“The code has become an anchor weighing down the economy, job creation, and wage growth for American families. This Congress has a once-in-a-generation opportunity to fix the problem,” the letter reads.

The last time Congress reformed the tax code was 31 years ago, the coalition writes. The Tax Reform Act of 1986, a bipartisan effort to remove loopholes and require every individual and corporation to pay its “fair share,” was signed into law by President Ronald Reagan after nearly four years of deliberation and revisions.

The 115th Congress seems uniquely positioned to create a simpler tax system during the 2017 legislative session. After months of discussion, Republican lawmakers on Friday released a draft of a budget resolution, a key precursor for any tax bill, setting out procedures that will allow the legislation to pass with a simple 51-vote majority rather than the usual 60-vote supermajority. According to the draft, the Senate Finance Committee and House Ways and Means Committee will have until Nov. 13 to draft tax bills.The current version of the House budget would require a tax plan that does not add to the deficit, while the Senate edition would allow tax writers to add $1.5 trillion to the deficit over 10 years.

In their letter, the coalition including OSCPA and 247 other state and local associations and chambers of commerce said the most important next step is “for Congress to adopt a budget resolution with reconciliation instructions that will permit tax reform to move forward without the threat of a filibuster.

“But failing to pass a budget resolution now may mean that tax reform never moves forward,” they wrote. “That outcome is unacceptable to all of us and ought to be unacceptable to every Member of Congress who has advocated for reform.”

Read the letter in its entirety.

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