Senate Finance Committee Chairman Chuck Grassley said Friday that he had set up five task forces to examine 42 expiring tax provisions in a bid “to fix the seemingly never-ending problem” of short-term tax extensions.
“I’ve been working to extend more than two dozen tax provisions that have expired since the end of 2017,” Grassley, R-Iowa, announced in an op-ed. “It’s important for these tax extenders to be enacted through the end of this year not only to provide certainty to those who rely on them, but also to give Congress time to evaluate each one and identify longer-term solutions.”
The bipartisan task forces will conclude by the end of June and are tackling the following issues: workforce and community development, health taxes, energy, business cost recovery and a combined group consisting of individual taxes and other temporary policies.
Another task force will examine whether Congress should move forward with permanent proposals to provide relief for taxpayers hit by natural disasters.
The task forces are focusing on provisions that either already expired or will expire, between Dec. 31, 2017 and Dec. 31, 2019.
“The bottom line is that if Congress is going to use temporary tax policy, taxpayers should be able to count on it,” Grassley said.
The task forces are reviewing the original purpose of each policy and whether it’s still necessary, Grassley said. “If so, the task forces will be responsible for identifying possible solutions that would provide long-term certainty in these areas.”
The task forces may decide to phase out the credit or deduction over a period of time, scale it back or eliminate it completely, Grassley said, while some provisions may also be extended without reform.
“For those, the particular task force will need to determine whether a continued short-term extension would work to achieve its policy goals, whether a longer-term extension is needed to force Congress to re-evaluate the provision down the road, or if the provision should be made permanent,” he said.
The job of the task-forces “is to identify reform proposals so Congress can end the unfortunate practice of kicking the can down the road, one year at a time.”
— Check out Senate Finance Chair Floats Tax Extenders Bill on ThinkAdvisor.