- September 22, 2016
- September 8, 2016
- August 18, 2016
On April 7, NAA/NMHC submitted the apartment industry’s recommendations on tax reform to the Senate Finance Committee. The Committee is examining proposals for reform, establishing five working groups to analyze the tax code. The working groups will deliver recommendations that include stakeholder input to Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) in May. Tax reform is a key issue for the multifamily industry because real estate depends on the free-flow of capital and after-tax rates of return.
We proposed that Congress consider, but also look well beyond, lowering statutory tax rates. Specifically, we emphasized they focus on the ability of a reformed tax code to efficiently allocate capital and drive job-creating business investment.
We believe that any tax reform proposal must:
However, prospects for tax reform in 2015 are uncertain because of divisions between President Obama and Republican lawmakers. The President and GOP remain divided over whether reform should be comprehensive or focus only on America’s largest corporations.
An agreement would also have to be reached over how much additional revenue, if any, an overhauled system should raise. And members of both parties would have to be prepared to limit popular tax incentives to lower rates. But the work being done now by the Finance Committee is likely to influence any future proposal.
Update: The House passed a bill on April 16 that would repeal the estate tax. Senate action is doubtful.
Provided by NMHC as part of the NAA/NMHC Joint Legislative Program
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