For Immediate Release
November 16, 2017
ABA Media Contact: Blair Bernstein
(202) 663-5468
Follow us on Twitter: @ABABankers

ABA Statement on House Passage of Tax Reform

By Rob Nichols, ABA president and CEO

“We applaud Speaker Ryan, Chairman Brady and members of the House for passing the first comprehensive tax reform legislation in more than 30 years. This is an important moment in the long–overdue effort to simplify the tax code and allow American businesses to compete in the global market. We are encouraged by the bill passed today and the progress Congress has made. 

“ABA continues to support comprehensive tax reform that creates jobs, grows the economy and adheres to our core principles​. We believe the bills in both the House and Senate can achieve those goals. In particular, the lower business tax rates included in the House bill hold the promise of enhancing the economy and job creation.

“We still think there is an opportunity to improve the House bill, and we appreciate that House members continue to listen to our concerns about the legislation’s treatment of pass-through businesses. The current bill prevents a large number of community banks that operate as Subchapter S businesses from benefiting from a lower tax rate — something we believe lawmakers never intended. We will continue to actively work with House and Senate lawmakers to address the pass-through issue so smaller institutions can best serve their local communities.  

“We remain disappointed that the House legislation still fails to make any changes to the outdated, unfair and unreasonable tax advantages enjoyed by credit unions and the Farm Credit System. Congress should treat businesses providing the same services the same way, and we will continue to make that case to lawmakers. 

“While the House has cleared an important hurdle today, we know there is more work ahead. ABA will continue to do its part to support a final tax reform plan that creates jobs, grows the economy and meets the test of our members.”

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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.​