The House passed budget reconciliation legislation that excludes several proposed tax provisions strongly opposed by ICBA.
Details: The legislation—which the House vote sent to President Joe Biden to be signed into law—includes no tax increases that would directly target community banks after ICBA recently weighed in against several provisions that have been under consideration.
ICBA on Record: In a recent letter to congressional leaders, ICBA said it continues to strongly oppose:
A 3.8% net investment income tax on active Subchapter S shareholders.
Any new requirements that financial institutions transfer customer financial data to the IRS.
Any increase in the taxation of capital gains or individual tax rates, including a new surtax.
Any cap or phaseout of the Section 199A deduction for shareholders in Sub S community banks and other pass-through small businesses.
Tax Provisions: None of these proposals are included in the bill. Instead, it would:
Institute a 15% minimum tax on corporations with profits exceeding $1 billion.
Implement a 1% excise tax on certain stock buybacks by publicly held corporations, which would apply to publicly held bank holding companies.
Background: ICBA last year successfully pushed back against several harmful tax proposals as part of its #KeepMyBankingPrivate campaign before the spending bill Congress was then considering stalled in the Senate.
Next: ICBA will continue to closely monitor future spending discussions and will strongly oppose any efforts to resurrect tax policies that would harm community banks and the customers and communities they serve.
