The National Association of Counties (NACo) issued the following statement in response to the final passage of the Tax Cuts and Jobs Act of 2017. NACo Executive Director Matthew Chase said:
“We are grateful that many county leaders across the country participated in the dynamic debate on federal tax reform. Federal policies – especially tax polices – have significant impacts on counties and our residents.
“We are pleased that several county priorities were preserved, including the tax-exempt status of municipal bonds and private activity bonds, the tax treatment of certain governmental pension plans and some housing incentives, such as the New Markets Tax Credit. These programs help local governments finance major community development and infrastructure projects that create jobs, foster economic growth and improve residents’ quality of life.
“We are disappointed that Congress capped the state and local tax (SALT) deduction. This represents a fundamental erosion of the federal-state-local balance in taxation and hamstrings counties’ ability to deliver essential services. Congress’s decision to retain a capped SALT deduction signals a belief in the underlying principle, and we will continue to work to restore this deduction for all families and further protect local decision-making.
“Further, the final tax reform package eliminated advance refunding bonds, which enable counties to refinance municipal bonds, saving local taxpayer dollars, especially on infrastructure projects.
“For counties, these issues are not about whether you’re a Republican or Democrat, or whether you live in a red or blue state. At the county level, we are focused on achieving results for our residents. We find ways to invest in efficient, often-mandated services, including public safety, job skills training, infrastructure and transportation, affordable housing and public health.
“Effective governing in the 21st century requires strong partnerships – at all levels and across all sectors. We’re committed to strengthening these partnerships to support healthy, vibrant, safe counties across the country.”
To read NACo’s analysis of the Tax Cuts and Jobs Act of 2017, click here.
The National Association of Counties (NACo) unites America’s 3,069 county governments. Founded in 1935, NACo brings county officials together to advocate with a collective voice on national policy, exchange ideas and build new leadership skills, pursue transformational county solutions, enrich the public’s understanding of county government and exercise exemplary leadership in public service.
Contact: Fred Wong, 202.942.4271, email@example.com