Renacci: Tax reform likely in 2017

Written on Dec 14, 2017

OSCPA staff report

OSCPA member and U.S. Rep. Jim Renacci, CPA, said he expects Congress will pass and President Trump will sign a tax reform bill by the end of the year.

Rep. Jim Renacci, CPA, R-Ohio“I believe we’ll get tax reform done,” Renacci said Monday at OSCPA’s Mega Tax Conference in Lewis Center. “I do believe the framework is in place.”

As Renacci – who is seeking the Republican nomination for Ohio governor – spoke to a throng of Ohio CPAs, a bipartisan conference committee of House and Senate negotiators were working in Washington, D.C., to agree on a final tax bill. On Wednesday, Congressional Republicans announced they had struck a deal and hoped to have legislation on President Donald Trump's desk by next week.

“The goal is sustained growth,” he said. “The country can’t survive on 1% to 1.5% growth; we need 3% growth to fly the plane.”

Renacci, a CPA and Society member, predicted that the final plan would allow taxpayers making $50,000-$80,000 a year to bring home an additional $1,000-$2,000 annually. He said the key provisions to watch include the corporate tax rate, the Alternative Minimum Tax and the mortgage interest deduction. He said he is in favor of keeping the interest deduction, though the issue ends up being moot for most taxpayers.

“Seventy percent of Americans do not itemize today,” Renacci said. “When you double the standard deduction, as both House and Senate plans do, 94% will not itemize,” and those who do will mostly be high-earning taxpayers.

Later on Monday, Cincinnati councilwoman Amy Murray announced she was joining Renacci’s ticket as candidate for lieutenant governor.

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  1. John | Dec 19, 2017

    How did it come to be that architects and engineers were excepted [from the otherwise definition found in IRC SEC 1202(e)(3)(A)] with respect to Act Sec 11011 of the current federal tax reform (new IRC SEC 199A’s qualified business income deduction of PTEs) but CPAs were not?  What did we do as a profession to garner the ire of the tax writing committees or said differently what did architects and engineers do to curry favor?    Recall engineering firms were beneficiaries of DPAD (soon to be repealed IRC SEC 199) but CPA firms were not.  

    And leave it to the tax writing committees to construct such vague language in Sec 1202(e)(3)(A) that is now going to be relied upon by millions of small businesses to determine if they qualify under IRC SEC 199A - assuming it is signed into law.  Current Section 1202’s language in and of itself is problematic for its intended purpose but far fewer taxpayers needed to rely upon its ambiguity to comply with federal income tax law than will those using it to interpret proposed Sec 199A.  There are but two PLRs out there and no case law I could find on point with respect to interpretations of 1202(e)(3)(A).   

    AICPA Congressional & Political Affairs - The Congressional and Political Affairs Team is charged with monitoring and advocating on legislative and other matters that affect the accounting profession, CPAs, and the AICPA. The Team works with Federal Key Persons, state CPA societies, firms, and other outside organizations to provide information and educate policymakers regarding key issues. The Congressional and Political Affairs Team regularly develops Congressional testimony, has direct contact with elected officials and their staffs, and works with regulatory agencies, to help promote sound policymaking on many national issues. Whether serving as an information resource or offering recommendations, the Team represents the profession while protecting the public interest.

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