Fall 2017

10 HCAOA The Voice PUBLIC POLICY What is Tax Reform? AS THE TAX REFORM DEBATE APPROACHES, HCAOA presents the issues being considered, along with the views on the subject of tax reform as the implications of its enactment are immense for businesses in the U.S. The House Ways and Means Committee has announced its priorities for tax reform. They include: • Lowering taxes at every income level. • Delivering the lowest tax rates for job creators of all sizes so they can invest more money in growing their businesses and creating jobs. • Eliminating the maze of special interest loopholes that keep rates artificially high. • Increasing the standard deduction. • Separating wage income from small business income. • Ending the estate tax (a.k.a. Death Tax) so family-owned farms and businesses can be passed down to the next generation. • Repealing the Alternative Minimum Tax. • Cutting in half the tax rates on personal savings and investment. Gary Cohn, the top economic adviser to President Donald Trump, is considered to be the man driving the White House's push to overhaul the tax code. Cohn recently laid out the administration's priorities on tax reform. The ideas Cohn detailed are similar in broad strokes to the one-page statement of principles the White House released in April. However, there are a few notable differ- ences. Here's a quick rundown of what the administration wants: • To preserve only three individual deductions. The GOP plan would keep popular deductions for mortgage interest, charitable giving and retire- ment contributions. The first two were included in the tax principles released in April, and the White House clarified a few days later that it also wanted to keep the retirement deduction. The White House also wants to double the standard deduction. • To eliminate the estate tax. This tax applies only if assets given to heirs total more than $5.49 million. • To get the corporate tax rate "as low as possible." It is unclear whether a 15 percent tax rate is still the goal or not. • To allow a one-time repatriation of over- seas cash. The administration previously said this would happen, and Trump said it would come at a 10 percent rate. Cohn has indicated the White House would begin to push the tax-cut plan in late August. He said the President's agenda and calendar are going to revolve around tax reform. Language on Credit for Caring Act HCAOA is advocating for the Credit for Caring Act ( H.R.2505/S.1151 ) to be included in any tax reform package moving forward. This legislation will provide a nonrefundable tax credit to assist family caregivers with costs associated with home care services and other items. The Credit for Car- ing Act, is championed by Senator Joni Ernst (R-IA), Senator Michael Bennet (D-CO), and Senator Elizabeth Warren (D-MA) in the Senate and by Rep. Tom Reed (R-NY) and Rep. Linda Sanchez (D-CA) in the House. The Act amends the Internal Revenue Code to allow an eligible caregiver a new tax credit for 30 percent of the cost of long-term care expenses that exceed $2,000, up to $3,000 in a taxable year. The bill defines "eligible caregiver" as an individual who pays or incurs expenses for providing care to a spouse or other dependent relative with long-term care