Tax Reform

The House and Senate have both passed tax reform legislation. Neither proposal meets the principles of tax reform supported by the San Diego Regional Chamber Board of Directors. The legislation is now in Conference Committee, where they will attempt to sort out the differences between the two bills before a single bill goes to President Trump’s desk for signature. Among the key differences are that the Senate bill repeals the Affordable Care Act’s individual mandate (the Chamber has supported the individual mandate and opposed repealing the ACA without a simultaneous replacement). In addition, the House bill has a disproportionate impact on San Diego due to capping the mortgage interest deduction on new home purchases valued over $500,000, and reducing the deduction for State and Local Taxes. The Senate bill eliminates the deduction for State and Local Taxes.