From the NLBMDA, a rallying cry to banish new taxes

A rallying cry to banish new taxes

The NLBMDA weighs in on a $3.5 trillion debate

Over the coming weeks, congressional committees will draft legislation around a $3.5 trillion budget resolution. At the same time, the NLBMDA says it will be working directly with those committees to protect LBM dealers.

NLBMDA has been lobbying Capitol Hill for several months urging them to reject any tax proposals that will negatively impact LBM dealers. The Washington, D.C.base association says it has made “significant inroads” in the Senate.

At presstime (late August), the House of Representatives has approved a 2022 budget resolution on a party-line vote of 220-212.

Approval of the budget resolution is the first step in the budget reconciliation process which directs legislative committees in the House and Senate to begin drafting a bill that could spend up to $3.5 trillion on legislative initiatives supported by President Biden and congressional Democrats.

Approval of the budget resolution is the first step in the budget reconciliation process which directs legislative committees in the House and Senate to begin drafting a bill that could spend up to $3.5 trillion on legislative initiatives supported by President Biden and congressional Democrats.

The budget resolution sets the topline spending levels for each committee and includes a series of legislative recommendations for the committees to consider as they draft the bill.

Both House and Senate leaders are requesting that the committees examine provisions relating to climate change, housing, education, immigration, child care, health care, paid leave and other social programs. bill. The actual bill is also expected to be more narrow in scope than the $3.5 trillion approved level.

The NLBMDA is strongly opposed to any tax proposals that will negatively impact LBM dealers, however.

In a letter to the House Ways and Means Committee and Senate Finance Committee, the NLBMDA highlighted its positions on several tax proposals that impact lumber and building material dealers, including:

To offset the cost of the legislation, Democrats have instructed the taxwriting committees to examine tax increases on individuals making over $400,000 per year and corporations.

The NLBMDA notes that these are just recommendations and it’s currently unclear which provisions will have enough support to be included in the final reconciliation

“Enacting tax policy that incentivizes job creation is particularly crucial as the U.S. economy continues to recover from the COVID-19 pandemic.”

Oppose the repeal or reduction of the existing 20% pass-through deduction; Oppose increases to personal income tax rates; Oppose increases to the corporate income tax rate; Oppose changes to the existing estate tax exemption and “step up in basis” provision; Oppose tax increases on capital gains; and Restore the state and local income tax (SALT) deduction.

The letter, signed by NLBMDA CEO Jonathan Paine, incudes the passage: “Small businesses are the backbone of the U.S. economy as they employ nearly half of all American workers and account for two-thirds of the net job creation over the past decade. NLBMDA believes any changes to our tax code should sustain the competitiveness of America’s small businesses and ensure they can remain viable in the long-term. “

Paine added: “Enacting tax policy that incentivizes job creation is particularly crucial as the U.S. economy continues to recover from the COVID-19 pandemic.”