2018 outlook for federal tax legislation
December 29, 2017 6:00 AM
Alexis Glenn
Frank Shafroth
“It is inconceivable that Congress will not have to act early in the year on a technical reform bill,” Frank Shafroth, director of the Center for State and Local Leadership at George Mason University, said.
He said the “cataclysmic rush” to enact the legislation bore not even a remote comparison to the outreach and deliberations over the last tax reform legislation in 1986.
“Because the legislation will have such a signal impact on increasing the federal deficit and debt, it seems certain that interest rates will rise—thereby increasing the cost of debt issuance for not just state and local governments, but also schools and universities,” Shafroth said.
He said the “cataclysmic rush” to enact the legislation bore not even a remote comparison to the outreach and deliberations over the last tax reform legislation in 1986.
“Because the legislation will have such a signal impact on increasing the federal deficit and debt, it seems certain that interest rates will rise—thereby increasing the cost of debt issuance for not just state and local governments, but also schools and universities,” Shafroth said.
Mayor Mark Stodola of Little Rock, Ark.
“Cities will continue to fight to fully restore SALT and the exemption for advance refunding bonds,” said National League of Cities President Mark Stodola, mayor of Little Rock, Ark.
Rep. Kevin Brady
“My sense is that there could be broad bipartisan support for restructuring the IRS,” said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee. "This is not our last tax reform. I’m going to recommend that we do have some form of tax reconciliation in future budgets because there are still areas of the tax code I think and we think can be improved whether it’s retirement savings, education, streamlining and we had a number of good ideas from our members we weren’t able to accommodate.”
Emily Brock
“I think the legislation, the way it is written, is actually a great opportunity for states and localities to address the collection of sales tax,” said Emily Brock, director of the Federal Liaison Center for the Government Finance Officer Association, referring to South Dakota's online sales tax law which has been struck down by a state court. South Dakota is appealing to the U.S. Supreme Court.
Victor J. Blue/Bloomberg
Mayor Mitch Landrieu of New Orleans
U.S. Conference of Mayors President Mitch Landrieu, the mayor of New Orleans, described the tax legislation as “a full-fledged assault on cities and the families who live in them.” He said, “This bill will make our cities harder to live in and harder to run effectively – all for the benefit of wealthy political donors.”
South Dakota Attorney General Marty Jackley
“Based upon the significant impact this issue has on every Main Street business, it remains my hope that our highest court will let us be heard,” South Dakota Attorney General Marty Jackley said of his state's appeal to the U.S. Supreme Court of its online sales tax law. “We have received extraordinary support from the State Attorneys General, the National Governors Association, educational leaders, and the business community in the national fight to bring tax fairness for our local retailers and to help support main street businesses.”
