For Immediate Release
November 10, 2017
ABA Media Contact: Jeff Sigmund
(202) 663-5439
Follow us on Twitter: @ABABankers

ABA Statement on Tax Reform

By Rob Nichols, ABA president and CEO

​“This week, Congress moved forward with two more important steps in the long overdue effort to overhaul the nation’s tax code. We applaud Chairman Hatch and the Senate Finance Committee for unveiling a comprehensive tax reform proposal to grow the economy and create jobs, and we congratulate Chairman Brady and the House Ways and Means Committee for successfully passing the House proposal out of committee. We are encouraged by the progress to date and the administration’s willingness to make tax reform a top priority.

​“ABA remains committed to pro-growth tax reform that creates jobs, stimulates the economy and adheres to our core principles. We are currently evaluating the Senate proposal against those principles, and are pleased to see several provisions that would spur economic growth and job creation, including lower business tax rates. Lower rates will help America’s banks and businesses compete globally, and the sooner those rates are in place the better.

​“As with the House proposal, we are carefully reviewing specific provisions in the Senate bill that could affect our members and our customers, including the treatment of pass-throughs, interest deductibility and limits on the deductibility of FDIC premium payments. We are particularly concerned that the current pass-through treatment in both bills could have unintended consequences on community banks that operate as subchapter-S businesses. We appreciate the willingness of the committees to work with us on this issue.

​“We are disappointed the Senate bill fails to make any changes to the outdated, unfair and unreasonable tax advantages enjoyed by credit unions and the Farm Credit System. Lawmakers looking for appropriate and responsible ways to pay for tax reform should start with the billions in misguided tax subsidies these groups receive while offering the same services as taxpaying banks. Tax reform is an opportunity for Congress to level the playing field and right this wrong.

​“ABA will continue to support tax reform, while engaging with lawmakers in both the House and Senate to ensure that any final plan achieves the economic growth, jobs, and fairness the American people deserve.”

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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.