The Senate is expected to vote on its tax plan next week, as Congress pushes ahead with a self-imposed timeline of enacting significant tax reform by year’s end.
Republicans cleared the first hurdle in the Senate late on Nov. 16 when the Finance Committee approved the tax bill on a party-line 14-12 vote. But Senate leaders are still trying to line up votes for the package next week, with Sen. Ron Johnson (R-WI) currently in the “no” column and others, such as Sen. Susan Collins (R-ME), voicing skepticism about the inclusion of the repeal of the Affordable Care Act’s individual mandate in the tax plan.
Senate leaders have already said more changes to the plan are likely when the bill is debated by the full Senate. ASAE has been urging Senate tax-writers to remove a provision in the Senate bill that would tax royalty income derived from the licensing of an organization’s name or logo. Here is ASAE’s letter to Senate leaders from last week, along with talking points on the royalty issue. ASAE has urged association advocates who are concerned about this issue to consider setting up a meeting with Senate staff back in their home state, or at least send their own letter of concern to the Senate.
While tax reform continues to progress quickly, there have been encouraging changes made to the legislation. Last week, during the Finance markup, Chairman Hatch eliminated a provision dealing with nonqualified deferred compensation plans that ASAE and others had opposed. ASAE had made the case that eliminating these plans would hurt nonprofit employees who in good faith entered into contractual agreements with their employers and who are counting on this benefit as part of their retirement planning. The provision would also hinder nonprofit employers in attracting and retaining top talent, ASAE said.
If you have any questions about either the Senate bill or the bill that passed the House last Thursday, feel free to reach out to ASAE’s Public Policy team at 202.626.2703 or email@example.com.