Yesterday, House Republican leaders released the Tax Cuts and Jobs Act (H.R. 1) that would make major changes to the federal tax code. Among the highlights, the bill would nearly double the standard deduction, reduce the number of individual tax brackets, slash the corporate income tax rate, create a new pass-through tax rate, and eliminate the estate tax. However, the proposal would also lower the cap on the mortgage interest deduction, which has been a cornerstone of American housing policy for over 100 years.

The House Committee on Ways and Means has scheduled a markup of the legislation for Monday, November 6. That announcement is consistent with NLBMDA's understanding that congressional Republicans have an aggressive timetable for passing tax reform.

Congressional Republicans are using the budget reconciliation process as the legislative vehicle for tax reform. That permits the Senate to bypass certain procedural hurdles and allow a simple majority to approve a tax overhaul package in the upper chamber.

A rule in the budget resolution bill (the legislative vehicle for tax reform) also allows for $1.5 trillion in tax cuts over 10 years without corresponding offsets. Using reconciliation requires that at least some of the tax cuts phase-in to comply with the Byrd Rule, a Senate rule that prohibits budget reconciliation provisions from increasing the deficit beyond 10 years.

NLBMDA has not yet taken a position on the Tax Cut and Jobs Act, but remains committed to preserving the mortgage interest deduction and eliminating the estate tax. Below is a summary of plan provisions that are relevant to lumber dealers. Should you have questions please email me at [email protected].

If you are interested in joining the NLBMDA Legislative Advocacy Committee who will be discussing the tax reform proposal in the coming days, contact Ben Gann at  [email protected].