Sen. James Lankford (R-Okla.), a member of the Senate Finance Committee, said Republicans need to enact their reconciliation bill before the August recess so that the tax portion can be properly implemented.
The Treasury Department and IRS need time to roll out regulations and guidance for businesses once the legislation is enacted, said Lankford, who spoke Tuesday at Punchbowl News’ The Conference.
“I think it’s better to be able to do it by the time you get to August recess, so you’ve got time to roll out regs,” Lankford said. “People in Congress forget that when we pass a law, it’s not done.”
Tax policy is going to be the main challenge in the reconciliation package, Lankford said, adding that most of the House Republicans have never voted for such a big tax bill before. That’s why the Senate initially tried to move forward with a “skinny” reconciliation bill that didn’t include tax, Lankford added.
Priorities: Lankford’s priorities for reconciliation include bringing back full bonus depreciation, which allows businesses to immediately deduct costs for short-term assets like equipment and machinery, and expanding the deduction for charitable giving so anyone could take advantage of the incentive.
Lankford also provided some insight into how lawmakers are working to include President Donald Trump’s long list of tax priorities, such as getting rid of taxes on tips. For no taxes on tips, it depends on how many people will be able to benefit from the policy and how lawmakers define what a “tip” is, Lankford said.
Medicaid: Lankford insisted Republicans aren’t discussing cuts to Medicaid benefits. Instead, he said they’re looking at how to get rid of Medicaid fraud and improper payments.
Watch the full conversation with Lankford here.
Fireside chat: Cisco Chair and CEO Chuck Robbins also joined The Conference to discuss tax policy and an upcoming meeting with Trump. Robbins, who is also the chair of the Business Roundtable, said the group planned to talk about tax, trade and immigration with Trump during a Tuesday meeting.
BRT is focused on a bigger tax break for R&D spending and maintaining a competitive international tax system in the United States, among other issues, Robbins said. BRT represents CEOs in charge of some of the largest U.S. businesses, like Cisco and JPMorgan Chase.
“We’re always optimistic,” Robbins said, referring to lawmakers’ tax negotiations. “I’m encouraged. I think it’s much more complicated this year.”
Watch the full conversation with Robbins here.
The Canvass at The Conference: Separately, Phillip Morris, partner at LSG provided an overview of the findings from our special Conference edition of our survey, The Canvass.
Morris said that based on the Canvass polling, Trump and the Republican Party are more popular than one might think. And while Trump’s policy priorities are popular, there are some concerns about their implementation.
Look out for the full Canvass results early next month.
