Monday, February 06, 2017
What I Learned on our Trip to Washington DC – the Week after the Inauguration of Donald J. TrumpBy David Verrill, Chair of ACA’s Public Policy Committee Ten days ago, I took a trip to Washington, DC with ACA executive director Marianne Hudson and our government affairs team of Chris McCannell and Greg Mesack from Eris Group. It was an interesting three days, with a combination of planning our policy work for the year, meeting with other associations with overlapping interests, and ten meetings on Capitol Hill. This was the week after the inauguration of President Trump, and you could see a lot of change in our nation’s capital. Here is what I learned: Comprehensive Tax Reform Comprehensive tax reform is coming (after Congress deals with the repeal and replacement of Obamacare), with the goal of having it done by August 1. Most believe that the House will follow blueprints by Paul Ryan and former Ways & Means chair Dave Camp as the basis to build on, with the following features:
The Senate is expected to have a lot of changes to the House proposal, which is likely to push the timeline into Q4 2017. The ultimate tax policy will be SIMPLER, PRO BUSINESS, and REVENUE NEUTRAL. Simple in terms of fewer categories of tax rates, pro-business in terms of a flat 20% corporate tax rate, and revenue neutral in that many loopholes will be closed and policies changed to “pay for” the lower rates. It appears that most tax exemptions could be on the chopping block, and that might include the 100% exemption of 1202 gains. It will be a big victory to keep 1202. Most of the conversations related to corporate taxes, so the tax reform for individual filers is less clear (aside from fewer tax brackets). Financial CHOICE Act This act includes a number of otherwise independent bills that are meant to foster new and/or small business creation. It includes items such as the HALOS Act which exempts business plan competitions and other gatherings from engendering treatment as General Solicitation – which brings with it onerous verification of accreditation and other Regulation D filings. The CHOICE Act is not likely to make it through the legislative process, perhaps passing the House, but not the Senate. Should that be the case, a separate opportunity to move the HALOS Act through Congress will be undertaken, and we also discussed having separate bills for several other ACA priorities so that these issues can eventually pass both Congressional chambers. ACA Public Policy Priorities In meeting with members of Congress, the SEC, and our potential partners on the Hill, we have developed the following approach:
Coalition With Like-Minded Groups ACA has a compelling story to public policy officials, but not every cause is a primary focus of ACA. In those instances, we are happy to join a coalition (e.g. write letters of support) for public policies that might affect some ACA members. For example, the treatment of carried interest, the 99 investor rule, or limits on immigration. In particular, we talked with the National Venture Capital Association (NVCA) and Biotechnology Innovation Organization (BIO). We have a Public Policy Committee, a Grass Roots Committee, and a lobbying firm (Eris Group) as our organizational assets. If you are interested in learning more, getting involved, and supporting the Public Policy efforts of ACA, please reach out to Marianne Hudson. |