Daily Tax Update - May 4, 2017: House Passes Bill to Repeal and Replace the Affordable Care Act

House Passes Bill to Repeal and Replace the Affordable Care Act:  Today, the House passed H.R. 1628 by a vote of 217-213. If enacted, the bill would repeal most of the Affordable Care Act’s taxes. The bill includes tax credits that are refundable and increase with age, and a manager’s amendment that would set aside $85 billion for the Senate to increase the credits for individuals ages 50 to 64 who could see premium increases with the new law. The bill also includes $8 billion in funding to help offset premiums for individuals with pre-existing conditions. The bill immediately repeals the 3.8% net investment income tax, while retaining the ACA’s provision for a 0.9% Medicare surtax on high-income earners through 2022. 

OECD Releases Country-by-Country Reporting Implementation Status and Exchange Relationships Between Tax Administrations:  Today, the Organization for Economic Cooperation and Development (OECD), in accordance with the BEPS Action 13 minimum standard, activated automatic exchange relationships under the multilateral competent authority agreement on the exchange of country-by-country reports. More than 700 automatic exchange relationships have been established among jurisdictions committed to exchanging CbC reports as of 2018. 

President Signs Executive Order On the Endorsement of Political Candidates by Religious Organizations:  Today, President Trump signed an Executive Order, “Promoting Free Speech and Religious Liberty.” The order has three main provisions. First, it provides that “the Secretary of the Treasury shall ensure, to the extent permitted by law, that the Department of the Treasury does not take any adverse action against any individual, house of worship, or other religious organization on the basis that such individual or organization speaks or has spoken about moral or political issues from a religious perspective, where speech of similar character has, consistent with law, not ordinarily been treated as participation or intervention in a political campaign on behalf of (or in opposition to) a candidate for public office by the Department of the Treasury.” Second, it states that the Departments of Treasury, Labor, and Health and Human Services “shall consider amending regulations, consistent with applicable law, to address conscience-based objections to the preventive-care mandate” of the Affordable Care Act. Finally, the order instructs the attorney general to issue guidance as appropriate for all agencies interpreting religious liberty protections in federal law.

Senators Wyden, Nelson, and Casey Urge Republicans to Keep Political Money Out of Tax-Exempt Organizations:  Today, Senate Finance Committee Ranking Member Ron Wyden (D-OR), and Senate Finance Committee members Bill Nelson (D-FL) and Bob Casey (D-PA) sent a letter to House and Senate Republicans urging them to “not politicize our nation’s charities in tax reform or other legislation.” The letter also stated that “hardworking Americans simply should not be required to subsidize the political spending for our country’s powerful few.”