Response to Finance’s Blank Slate Approach

On July 24, in response to a Dear Colleague letter from Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) outlining a basic framework for drafting a tax reform bill, AGC sent a letter to the Finance Committee leaders and members of the Senate highlighting various portions of the tax code affecting construction companies of all sizes and business models. In the Baucus/Hatch letter last month, the leaders of the panel asked all Senators to formally submit legislative language or detailed proposals for what tax expenditures should be included in a reformed tax code by July 26, with special attention given to bipartisan proposals. The Finance Committee is requiring that tax provisions be justified based on a three-part test (i.e. grow the economy; make the tax code fairer; and/or effectively promote other important policy objectives) before they are incorporated into a bill to reform the tax code. The exercise has had a tepid response from their Senate colleagues, as confidentiality of Senators’ submissions have the potential to rebuff certain industries and partisan disputes remain regarding revenues and base statutory rates. AGC continues to identify and meet with Senate offices that are amiable to submitting comments. With regard to the Finance panel marking up tax reform legislation this fall, Chairman Baucus said in a June 24 speech on the Senate floor, “I don’t like to predict dates because sometimes they change but it will be sometime in September, October, November.” For more information, please contact Brian Lenihan at (202) 547-4733 or lenihanb@agc.org.