On September 28, the House of Representatives approved a package of three tax bills (H.R. 6760, H.R. 6757, H.R. 6756), collectively referred to as “Tax Reform 2.0” by a vote of 220-191. The centerpiece of the package, H.R. 6760, makes permanent the individual tax cuts from last year’s Tax Cuts and Jobs Act that are presently set to expire in 2025. The Tax Policy Center estimates that tax revenues would fall by $3.2 trillion over a 10-year period under H.R. 6760, on top of the $1.9 trillion that last year’s tax law is already expected to cost. The Senate is not expected to take up the measure prior to the mid-term elections. The Arc opposes Tax Reform 2.0 as it sharply reduces federal revenue, extends tax cuts that primarily benefit wealthy individuals, and will create greater pressure to cut critical programs for people with disabilities. Read more from CCD here.
Category Archives: Tax Policy
Read about tax policy issues as they relate to The Arc’s public policy.
Tax – House Committee Approves Second Round of Tax Cuts
On September 13, the House Ways and Means Committee approved a package of three tax bills (H.R. 6760, H.R. 6757, H.R. 6756), collectively referred to as “Tax Reform 2.0”. H.R. 6760 makes permanent the individual tax cuts from last year’s Tax Cuts and Jobs Act that are presently set to expire in 2025; H.R. 6757 makes various changes to retirement savings rules, including allowing penalty-free withdrawals for expenses related to birth or adoption; and H.R. 6756 makes various tax changes for startup companies. The full House is expected to vote on the package by the end of the month. House Speaker Paul Ryan (R-WI) has said he wants the measure voted on before leaving for the recess and the final campaign push before November. The Arc opposes Tax Reform 2.0 as it sharply reduces federal revenue, extends tax cuts that primarily benefit wealthy individuals, and will create greater pressure to cut critical programs for people with disabilities. Read more from the Center on Budget and Policy Priorities here and see the statement from CCD’s Fiscal Policy Task Force here.
Tax Policy – House Outline for Additional Tax Cuts Released
House Ways and Means Committee Chairman Kevin Brady (R-TX) has released a Listening Session Framework for what is being referred to as “Tax Reform 2.0”. The outline includes making permanent the individual and small business tax cuts in the Tax Cuts and Jobs Act of 2017. Permanent extension of the individual and small business tax cuts, that are presently set to expire in 2025, would reduce revenues by $1 trillion over ten years – increasing pressure to cut vital federal programs for people with disabilities. Chairman Brady has stated that he intends to bring a legislative package to the floor in September. If both chambers pass a concurrent budget resolution for fiscal year 2019, it would be possible for the Senate to approve additional tax cut legislation by a simple majority.
Tax Policy – Washington Opens Qualified ABLE Programs
On July 23, the State of Washington opened a new Achieving a Better Life Experience (ABLE) program, bringing the total number of jurisdictions with ABLE programs to 40. The program is currently only open to Washington residents. It has three investments options and a cash option. Accounts have a $35 annual fee with an additional $10 fee for those who receive paper statements, and asset-based fees ranging from 0.30% to 0.38% for investment options. More information about state implementation of the ABLE Act can be found here.
Employment/Tax Policy – Disability Employment Incentive Act Introduced
Senator Bob Casey (D-PA) has introduced the Disability Employment Incentive Act. This bill increases three tax credits for employers. The Work Opportunity Tax Credit, which provides incentives for businesses to that hire people referred by vocational rehabilitation, or who are on Supplemental Security Income of Social Security Disability Insurance, would be increased from $2,400 to $5,000. The Disability Access Expenditures Tax Credit will be increased from $5,000 to $10,000. The Architectural and Transportation Barrier Tax Credit will be increased from $15,000 to $30,000. The Arc supports this bill.
Tax Policy – Delaware, New Jersey Open Qualified ABLE Programs
Last month, Delaware and New Jersey opened new Achieving a Better Life Experience (ABLE) programs. There are now a total of 39 jurisdictions with qualified ABLE programs. Both programs are open to all eligible individuals nationwide. Both have six investment options and a checking option with a debit card. Their minimum initial deposit is $25. The programs have a quarterly maintenance fee of $15 with a $3.75 discount for opting to receive statements via email, and monthly asset-based fees ranging from 0.34% to 0.38% depending on the investment option chosen. Delaware’s program has an additional $1.25 quarterly discount for state residents. More information about state implementation of the ABLE Act can be found here.
Tax Policy – Oklahoma Opens Qualified ABLE Program
Oklahoma recently opened a new ABLE program, bringing the total number of jurisdictions with ABLE programs to 37. The program is currently only open to Oklahoma residents. It has five investment options. Accounts have a $3.50 monthly maintenance fee and asset-based fees ranging from 0.19% to 0.33% for investment options. The minimum initial deposit is $50. More information about state implementation of the ABLE Act can be found here.
Tax Policy – Texas Opens Qualified ABLE Program
Texas recently opened a new ABLE program, bringing the total number of jurisdictions with ABLE programs to 36. The program is currently only open to Texas residents. It has four investment options. Accounts have a $4 monthly maintenance fee and asset-based fees ranging from 0.25% to 0.39% for investment options. The minimum initial deposit is $50, and the minimum amount for subsequent deposits is $25. More information about state implementation of the ABLE Act can be found here. General information about ABLE programs can be found in the National Policy Matters: ABLE Accounts for People with Disabilities here.
Tax Policy – Webinar Scheduled on Social Security’s Updated ABLE Guidance for April 26
The ABLE National Resource Center will host a webinar titled “Social Security’s Updated ABLE Guidance – A Deeper Dive”. The webinar will cover the Social Security Administration’s (SSA) newly-updated section of the Program Operation Manuals System (POMS) which provides updated guidance to local and regional SSA staff on how to treat ABLE accounts when determining eligibility for Social Security programs. The webinar will take place on April 26 from 2:00-3:30 p.m. Eastern Daylight Time. Chris Rodriguez, Director of the ABLE National Resource Center, will present and moderate the webinar. Other presenters will be Marlene Ulisky, Social Security Benefits Expert, National Disability Institute; James R. Sheldon, Supervising Attorney, Neighborhood Legal Services; and Rob Percival, Sr. Vice President, Strategic Products, Ascensus College Savings; and an ABLE account owner. Register for the webinar here.
Tax – Arizona, Wyoming Open Qualified ABLE Programs
Arizona and Wyoming recently opened new ABLE programs, bringing the total number of jurisdictions with ABLE programs to 35. These programs are currently open only to state residents. They have five investment options. The accounts have a $3.50 monthly fee and asset-based fees ranging from 0.19% to 0.34% for investment options. The minimum initial deposit is $50. More information about state implementation of the ABLE Act can be found here. General information about ABLE programs can be found in the National Policy Matters: ABLE Accounts for People with Disabilities here.