The HVACR organization started to express some valuable concerns as Congress approaches tax reform.
All eyes have been on Donald Trump and the Republican-led Congress as they attempt to make good on the campaign promises that earned them the White House and majority positions.
On April 26, the Trump administration released a broad outline of its tax reform proposal, which would drastically alter the existing tax code. Some of the highlights in the plan include:
- Tax Brackets: The plan would reduce the number of tax brackets from seven to three with rates of 10, 25, and 35 percent. The top rate would not apply to pass-through income, which would be taxed at 15 percent (along with the corporate tax rate);
- A full repeal of both the estate tax and the alternative minimum tax;
- Elimination of many deductions, including the ability to deduct state and local taxes from reported income; and
- The standard deduction would be doubled ($6,300/single and $12,600/married and filing jointly), while the mortgage interest and charitable contribution deductions would remain in place.
While many officials representing several leading HVACR industry associations applaud the administration’s initial efforts on tax reform, they’re still actively lobbying in Washington on the industry’s behalf.