Local governments worry the change will impede their ability to finance major infrastructure projects, particularly affordable housing. It also specifically ends the deduction for sports stadium financing and repeals rules for using tax credits in lieu of bond payments. The House bill repeals the interest deduction on various types of bonds, including private activity bonds often used by municipalities to finance hospitals, housing and other projects. It’s unclear if it will remain in the final bill. Under law, endowments face a tax that can range from 1% to 2%, depending on if they make dispersions.Ĭolleges and universities are particularly concerned the new tax will hurt operations, and the Yale Daily News reported that top alumni were lobbying Congress to drop it. The Senate bill initially carved out an exception that specifically would have helped Hillsdale College in Michigan, a school backed by the wealthy family of Education Secretary Besty DeVos. University, private foundation endowmentsīoth the House and Senate bills impose a new, flat 1.4% excise tax on incomes produced by university and other private endowments. The alcohol tax breaks have bipartisan support in the House and Senate and appear poised to remain in the final bill. But he ultimately opposed the Senate overhaul. Ron Wyden, the top Democrat on the Finance Committee, in the broader tax package, since he was a lead sponsor of the original bill. Including the measure was a way to pique the interest of Oregon Sen. “These businesses are often cornerstones of their communities.” “Every congressional district in the United States includes a brewery, winery, distillery, importer, or industry supplier,” said the organizations representing brewers in a letter to Congress. And it reduces taxes overall at greater production output. The measure reduces excise taxes on smaller producers – halving the craft beer tax, for example, from $7 a barrel to $3.50 on the first 60,000 barrels produced domestically. The Senate bill provides a tax cut on beer, wine and distillers – which lobbyists say is the first since the Civil War - with a slimmed-down version of the popular and bipartisan Craft Beverage Modernization and Tax Reform Act. The addition seems like it might fly in the House and be accepted in the final product. The Joint Committee on Taxation estimated it would amount to less than $50 million in potential lost revenue over the decade. argued it simply clarifies existing tax law. Though Democrats have condemned the provision as a tax break for private jets, the National Business Aviation Assn. The bill prohibits any new taxes from being imposed on aircraft owners for money spent on “services related to maintenance and support of the aircraft owner’s aircraft, or flights on the aircraft owner’s aircraft.” Private jet owners have long fought the IRS to avoid a special excise tax that applies to commercial flights, and the Senate bill would permanently allow them to avoid it. The provision did not pass special Senate rules, which prevent budget measures like the tax bill from veering too deeply into policy changes. “A child in utero means a member of the species homo sapiens, at any stage of development, who is carried in the womb,” the summary says.
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