Last night, President Biden kick-started the debate on the Tax Cuts and Jobs Act. Many provisions of the 2017 tax bill expire on December 31, 2025, including all the personal tax provisions, setting the stage for additional tax reform next year. While key BDApriorities were not discussed, the President laid out key Democrat parameters for the tax debates, setting the stage for the debate even if does not win reelection later this year.
The BDA is planning regular fly-ins over the next 18 month to promote the tax exemption, and advocate for key muni priorities in the context of tax reform including a Market Structure fly-in on March 21st. If you are interested in participating in these events please let us know.
Some key points of the SOTU include:
- Raise the corporate tax rate from 21% to 28%;
- Raise the corporate minimum tax from 15% to 21%;
- Vowed to not raise taxes on families making less than $400,000 annually;
- Implement a high earners surtax of 25%; and
- Expand the Earned Income Tax Credit and restore the expanded Child Tax Credit, which expired at the end of 2021.
BDA on the Hill
The BDA continues to speak with key offices on the Hill, laying the groundwork for munis in the likely tax-reform in 2025. Beyond promotion of municipal bonds, we continue to advocate for key muni priorities including:
- Restoration of advance refundings;
- Raising the BQ debt limit; and
- Expand the usage of PABs.
We feel that the tax-exemption has strong bipartisan support on the Hill and that these provision will receive ample consideration next year during the tax debates.
The BDA is also relaunching the Municipal Bonds for America coalition, a one of a kind coalition featuring leadership from the sell and buy-side. We will provide more details about the coalition in the coming days.
