House Hopes to Pass Budget Plan Before Recess

Posted on July 28, 2017

Republican leaders are trying to pass a budget before the House of Representatives goes on recess at the end of the week. The proposal would “set the stage for a potential $203 billion rollback of financial industry regulations, federal employee benefits, welfare spending and more,” The Washington Post reported.

The bill passed the Budget Committee last week. The GOP calls it “a plan for fiscal responsibility,” and says it would balance the budget without raising taxes or cutting Social Security. However, the plan is facing a tough battle; some parts of it are opposed by House conservatives, other parts by Republican moderates.

The bill aims to do more than set spending priorities. It would also be a stepping stone lawmakers could use in the Senate to avoid a filibuster and advance one of President Donald Trump’s top issues. “This is the tax reform budget,” Ways and Means Chairman Kevin Brady (R-TX) said. “It’s critical that our party in the House comes together to pass this budget.”

Sensible tax reform that leads to a simpler tax code and more economic growth is a NAIOP legislative priority. Reform, however, should not eliminate or curtail important elements of the code. For example, Section 1031 tax-deferred like-kind exchanges or the capital gains tax treatment of carried interest compensation. Removing or limiting either of these components would damage the commercial real estate industry.

As legislative tax reform efforts advance, NAIOP staff continues to meet with lawmakers to ensure that spending and tax reform bills protect the interests of the CRE industry.

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