capital report january 29 2019

Senators Re-Introduce Bipartisan Legislation Ordering Study on Auto Tariffs

Earlier this month, Sens. Doug Jones, D-Ala., and Lamar Alexander, R-Tenn., introduced legislation in the new Congress that would require the International Trade Commission (ITC) to conduct an economic study on the U.S. automotive industry before any tariffs on autos or auto parts could be applied.

Last May, President Trump ordered the U.S. Department of Commerce to initiative a Section 232 investigation into the threat of imported automobiles, trucks and parts on U.S. national security. If the Commerce investigation determines there to be such a threat—a determination expected to be announced in February—the administration would levy a 25 percent tariff. This new tariff would be in addition to existing Section 301 tariffs on imports from China.

The legislation, if passed, would essentially delay any new tariffs on autos and auto parts until the ITC study is completed.

Read the senators' statement: https://www.jones.senate.gov/newsroom/press-releases/senators-jones-and-alexander-re-introduce-bipartisan-legislation-to-delay-auto-tariffs

 

Treasury/IRS Issue Guidance on New Business Income Deduction

The U.S. Treasury Department and the Internal Revenue Service (IRS) issued final regulations on Jan. 18 implementing the new qualified business income (QBI) deduction, also called the section 199A deduction.

The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act (TCJA), allows many owners of sole proprietorships, partnerships, S corporations, trusts or estates to deduct up to 20 percent of their qualified business income. 
 
For details on this deduction, including answers to frequently-asked questions, as well as information on other TCJA provisions, visit IRS.gov/taxreform.

Questions? Contact Paul Fiore.

IRS Tax Reform Resource Center: https://www.irs.gov/tax-reform

 

Get the Latest Coverage of the 2020 Elections

Thanks to support from the Auto Care Political Action Committee (ACPAC), we are pleased to bring Capital Report readers the latest Inside Elections with Nathan Gonzalez, a bi-monthly nonpartisan analysis of U.S. elections.

Read the latest issue: https://www.autocare.org/Government-Affairs/Capital-Report/Election-Updates/inside-elections-11819/

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