Today, House Republicans introduced H.R. 1, the “Tax Cuts and Jobs Act,” which proposes a variety of changes to the U.S. tax code. The Committee on Ways and Means which has primary jurisdiction over tax issues in the House of Representatives is scheduled to “mark –up,” or consider the proposal next week. While NTEU does not take a position on tax policy per se, we are closely following this legislation to determine what impact it may have on federal workers.
As currently drafted, the bill proposes changes to a number of tax provisions of potential interest to federal employees, including employer-provided transportation benefits and rules governing 401(k) programs like the Thrift Savings Plan (TSP). NTEU is still reviewing the specifics of these proposals to determine what, if any, impact they would have on federal employees at FDA.
While proposing a number of changes to the U.S. tax code, it does not appear that H.R. 1 contains any proposals to reform or restructure the IRS. In fact, supporting materials released by the House Republican leadership accompanying introduction of H.R. 1 note that while the legislation does not propose any restructuring of reform of the IRS, they are currently working on a complementary bill to “modernize the IRS’ that they plan to consider in 2018. This corresponds to statements by Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, concerning plans to focus on restructuring the IRS next year, but not as part of the current effort to reform the tax code.
In the coming days, NTEU will continue to review H.R. 1 to determine the specific impact of the legislation on federal employees. It is almost certain the bill will undergo a number of significant changes during committee consideration next week, as well as during potential consideration by the full House later this month. The Senate Finance Committee is also expected to begin consideration of a separate tax reform bill later this month in the U.S. Senate.
You can be assured I will continue to provide you with updates as this legislation progresses.
Should you have any questions, or require additional information, please contact your chapter president.