This week, members will be receiving the Commercial publication from NAR. Please read through the issue for excellent insights. Here is a link to the issue: https://www.nar.realtor/commercial
Jamie Gregory serves as deputy chief lobbyist for the National Association of REALTORS®. In that role, he manages the day-to-day operation of NAR’s legislative advocacy and political communications programs. Gregory represents REALTORS® before the Congressional delegations of Delaware, Maryland, Pennsylvania, Texas, Utah, and Colorado.
John DiBiase (JD): What the does the defeat of the House health care reform bill mean for the Congressional agenda?
Jamie Gregory (JG): The demise of the health care bill complicates the rest of the agenda laid out by the House leadership. The repeal of the Affordable Care Act (ACA) would have ended taxes used to pay for expanded health insurance coverage. With those taxes still on the books, it makes tax reform more difficult to achieve.
Jamie Gregory (JG): The demise of the health care bill complicates the rest of the agenda laid out by the House leadership. The repeal of the Affordable Care Act (ACA) would have ended taxes used to pay for expanded health insurance coverage. With those taxes still on the books, it makes tax reform more difficult to achieve.
JD: How could tax reform be more complicated? This issue is already so difficult that we have not seen a major reform more than thirty years.
JG: Congress has avoided tax reform since Ronald Reagan was President. A House rule called “Budget Reconciliation” adds a layer of complexity to the already complicated legislative process. Under the “Budget Reconciliation” rules, the tax reform bill cannot add to the ten-year projected budget deficit. The primary goal of tax reformers is to lower the individual and corporate tax rates. This will decrease revenue into the government. Without additional tax revenue or spending cuts, the deficit would increase violating the “Budget Reconciliation” rules. Those ACA taxes staying on the books changes the arithmetic for tax reform. Assuming ACA had been repealed the deficit reduction over ten years had been estimated from a low of $150 billion to a high of $337 billion. Those savings would help offset any revenue lost by changing the tax rates.
JD: So what does all of this mean for tax reform in 2017?
JG: The initial timeline for a comprehensive tax reform bill was very aggressive. House leadership pointed to the Congressional recess in August as a guidepost. That timeline assumed repeal of the ACA. It is now unlikely that a completed tax reform bill will adhere to the original timeline.
JG: The initial timeline for a comprehensive tax reform bill was very aggressive. House leadership pointed to the Congressional recess in August as a guidepost. That timeline assumed repeal of the ACA. It is now unlikely that a completed tax reform bill will adhere to the original timeline.
JD: Are there other issues that bear watching?
JG: Yes, NAR is always actively engaged in dozens of issues at any point in time, from both a legislative and regulatory standpoint. Think of a radar screen. There are many blips on the screen but some are moving faster and getting closer to the center. Tax reform and reauthorizing the National Flood Insurance Program for residential and commercial properties are the two blips that represent a clear and present danger. That could change in an instant but NAR stands ready to protect REALTORS® business interests against any, and all threats.
JG: Yes, NAR is always actively engaged in dozens of issues at any point in time, from both a legislative and regulatory standpoint. Think of a radar screen. There are many blips on the screen but some are moving faster and getting closer to the center. Tax reform and reauthorizing the National Flood Insurance Program for residential and commercial properties are the two blips that represent a clear and present danger. That could change in an instant but NAR stands ready to protect REALTORS® business interests against any, and all threats.
For more on issues NAR is monitoring, download the Commercial Issues and Actions brief and explore a comprehensive list of advocacy topics:www.nar.realtor/commercial/advocacy