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ICBA Releases Statement on Tax Reform Conference Report

December 18, 2017, 07:03 AM
Filed Under: Banking News

Independent Community Bankers of America (ICBA) President and CEO Camden R. Fine released the following statement on the tax reform conference report.

“Following the tax reform conference committee’s release of its final report, ICBA and the nation’s more than 5,700 community banks are pleased to see significant improvements contained in the pro-growth tax reform agreement. ICBA supports the tax relief provisions of the agreement, which would reduce the top corporate rate from 35 percent to 21 percent beginning Jan. 1, double the estate tax exemption, provide alternative minimum tax relief, and lower the top individual rate from 39.6 to 37 percent.

“Among its pro-community bank provisions, the legislative agreement would carve out small-business borrowers from limits on the deduction for business interest expenses, preserve laws on non-qualified deferred compensation and mortgage-servicing assets, and largely maintain the mortgage interest deduction. ICBA particularly appreciates the improvements to provisions on Subchapter S community banks and other pass-through businesses, lowering the effective tax rate for these small businesses. Subchapter S community bank shareholders will be allowed to deduct 20 percent of the business income, for a top effective rate of 29.6 percent. This deduction will also be available to shares held in estates and trusts.

“Nevertheless, ICBA and community bankers across the nation remain concerned that lawmakers have yet to address the significant cost and inequity of the tax expenditures provided to the tax-exempt credit union industry and tax-advantaged Farm Credit System.

“ICBA will continue working with the House, Senate and Trump administration to ensure tax reform achieves the best possible results for the customers and local communities that community banks serve.”

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