{"id":8364,"date":"2023-06-21T18:40:34","date_gmt":"2023-06-22T01:40:34","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=8364"},"modified":"2023-06-21T18:40:45","modified_gmt":"2023-06-22T01:40:45","slug":"house-approves-gop-tax-package-but-salt-relief-still-in-limbo","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/taxes\/house-approves-gop-tax-package-but-salt-relief-still-in-limbo\/","title":{"rendered":"House Approves GOP Tax Package, But SALT Relief Still in Limbo"},"content":{"rendered":"

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House Tax-Writing Committee Advances GOP Economic Bills.\u00a0<\/strong>The House Ways and Means Committee approved a trio of Republican tax bills along party lines during a markup last week. The economic-growth package, which is comprised of the Tax Cuts for Working Families Act (H.R. 3936<\/a>), the Small Business Jobs Act (H.R. 3937<\/a>) and the Build It in America Act (H.R. 3938<\/a>), incorporates several tax proposals that were previously offered by Republican committee members as standalone bills earlier this year.\u00a0For Brownstein\u2019s full summary of the tax package,\u00a0<\/em>click here<\/em><\/a>.<\/em><\/h2>\n

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Democratic lawmakers offered several amendments to the bills throughout the markup, but none were adopted due to unanimous rejection from the Republican majority. Several Democrats targeted the proposed repeal of several green-energy tax credits; Reps. Dan Kildee (D-MI) and Earl Blumenauer (D-OR) offered amendments to maintain the current clean-vehicle and electricity tax credits. Rep. Lloyd Doggett (D-TX) proposed adding a provision that would apply the global intangible low-taxed income (GILTI) regime on a \u201ccountry-by-country\u201d basis instead of its current global-aggregate approach.
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Committee members also debated the merits of proposals to raise the current $10,000 state and local tax (SALT) deduction limit. Rep. Bill Pascrell (D-NJ) offered an amendment that would increase the SALT cap to an inflation-adjusted $60,000 ($120,000 for joint filers) for tax years 2023 through 2032. Although Reps. Nicole Malliotakis (R-NY) and Claudia Tenney (R-NY) noted their support for SALT reform, they sided with the other Republican committee members in rejecting the proposal.<\/p>\n

After the markup, several off-committee Republican lawmakers, including Reps. Mike Garcia (R-CA) and Nick LaLota (R-NY), signaled they may not support the bills on the House floor due to the absence of SALT relief. Rep. LaLota said he is pushing other members of the GOP conference to insist on the inclusion of a SALT amendment to the tax package before it receives floor consideration.<\/p>\n

Notwithstanding disapproval from some SALT advocates, the House is expected to pass the unamended package in the coming weeks. While the partisan bills are unlikely to receive consideration in the Democratic-controlled Senate, the individual proposals included in the legislation lay the groundwork for the development of future bipartisan tax legislation in the 118th Congress. During the markup, Ranking Member Richard Neal (D-MA) noted that Democrats \u201cstand ready to negotiate some of [the tax] proposals\u201d offered in the bills.<\/p>\n

Wyden Expands Investigation into PGA\u2019s Tax Status.<\/strong>\u00a0Senate Finance Committee Chairman Ron Wyden (D-OR) issued a\u00a0letter<\/a>\u00a0to the leadership of the PGA Tour on June 15 requesting information on the organization\u2019s reported merger with LIV Golf. Chairman Wyden claimed that the agreement with the Kingdom of Saudi Arabia\u2019s Public Investment Fund (PIF), which funds LIV Golf, may affect the PGA\u2019s tax structure and have \u201cimplications for data privacy, national security and censorship.\u201d<\/p>\n

The letter references the PGA Tour\u2019s current section 501(c)(6) status, with Chairman Wyden alleging that the PGA\u2019s recent executive-compensation agreements raise \u201cbroader questions about the appropriateness of the continued tax exemption\u201d afforded to the organization. Chairman Wyden also announced the commencement of a new \u201cwide-ranging investigation\u201d into the details of the merger agreement to determine whether the exemption provided to U.S. sports leagues will apply to the joint PGA-LIV entity.<\/p>\n

Last week, Rep. John Garamendi (D-CA) introduced\u00a0legislation<\/a>\u00a0to strip professional sports leagues, including the PGA Tour, of their tax-exempt status. Likewise, Rep. Mike Thompson (D-CA) offered an\u00a0amendment<\/a>\u00a0during the House Ways and Means Committee markup last week that would have rescinded the applicability of the section 501(c)(6) tax exemption for professional sports leagues with more than $1 billion in annual gross receipts; the amendment was not adopted.<\/p>\n

In conjunction with the PGA investigation, Chairman Wyden\u2019s letter announced his planned introduction of legislation that would revoke the use of the section 892 tax exemption for PIF. The provision currently exempts most foreign governments and their sovereign wealth funds from U.S. taxes on certain types of U.S. source passive income, including stocks and bonds.<\/p>\n

To end the letter, Chairman Wyden posed several questions to the PGA Tour executives, including a request for more information regarding current financial agreements between the PGA Tour and external entities, including PIF and LIV Golf. The letter also solicits a \u201cdetailed description\u201d of the structure of the new joint organization and the expected role of its announced chairman, Yasir Al Rumayyan, who is currently governor of PIF. Chairman Wyden requested an answer to his questions by June 23.<\/p>\n

Guidance Package on Monetizing IRA Tax Credits.<\/strong>\u00a0The Treasury Department and Internal Revenue Service (IRS) on June 14 released a package of guidance to implement new options for taxpayers to monetize energy credits enacted as part of the Inflation Reduction Act (IRA,\u00a0Pub. L. 117-169<\/a>), including:<\/p>\n