Posted on July 10, 2017
With health care legislation moving along, House Speaker Paul Ryan is eager to pivot to tax reform. During a June 20 speech at the National Association of Manufacturers, the speaker discussed the GOP Blueprint for Tax Reform. He said the plan will eliminate certain taxes, including the Alternative Minimum Tax, and vows it will “clear out special-interest carve outs and excessive deductions, and focus on keeping those that make the most sense: home ownership, charitable giving, and retirement savings.” Finally, he promised to use the savings from closing loopholes to decrease tax rates.
For his part, Ways and Means Committee Chairman Kevin Brady says, “What we are hearing from our local businesses is: go bold, go permanent, and go now.”
NAIOP’s government affairs staff meets regularly with lawmakers to discuss tax reform legislation and to voice concerns regarding proposals that could harm the CRE industry. That includes measures that would eliminate or limit real estate like-kind exchanges under Section 1031 of the tax code, and end the capital gains treatment for real estate partnership “carried interests.”
NAIOP strongly supports comprehensive tax reform, which should simplify the tax code and encourage economic growth, but not take away vital aspects of the code that support commercial real estate development.