ICBA expressed strong opposition to certain tax provisions policymakers are considering as part of the Build Back Better reconciliation package.
Policies: In addition to the widely opposed IRS reporting proposal, ICBA cited policies including a 3.8% net investment income tax on Subchapter S shareholders, increasing the corporate tax rate or capital gains taxation, eliminating the “stepped-up basis” policy avoiding taxation at death, and restricting the Section 199A Sub S deduction.
Framework: While the reconciliation framework released Thursday by the White House excludes the removal of “stepped-up basis” and Section 199A restrictions, it includes the 3.8% NIIT, among other ICBA-opposed policies.
Outlook: ICBA will continue working with policymakers in opposition to tax hikes on community banks, noting in its letter that tax increases would limit community bank capital needed to stimulate local economies.
