Kentucky Derby Kickoff Reception Recap

 The NTRA held our Annual Kentucky Derby Kickoff Congressional Reception on April 9th on Capitol Hill, and it was a resounding success! The reception began at 5 PM with over a dozen Members of Congress and Senators, and 500 congressional staffers all enjoying the kickoff to Derby season. They got to take photos with three Kentucky Derby trophies, halters from last year’s Derby winner and Horse of the Year, and enjoy mint juleps in official Kentucky Derby glasses.

Every year, the event grows, with this year being our biggest crowd yet. Our goal of being the association that people think of when they think of horse racing is driven home by this continued success.

Pictured: NTRA President and CEO Tom Rooney (right) with Representative Morgan McGarvey (D-KY, left) and Andy Barr (R-KY, center), alongside three Kentucky Derby trophies.

The Sprint for Reconciliation

House Republicans have put pen to paper on their sweeping tax megabill and passed the legislation early Thursday morning by one vote – 215-214. The vote came after a whirlwind week of legislation, where members of the House stayed through the night debating it. The reconciliation package encompassing President Donald Trump’s agenda now moves to the Senate, where it is expected to be changed.

The stated goal of House Republicans was to pass it before Memorial Day, and they accomplished that goal with just days to spare. They started with the less-controversial portions first, namely border and immigration spending, along with a significant boost to Pentagon coffers — issues that enjoy relatively broad support among Republicans. The sticking points came later in the debate process, with Republican hardliners holding out because of the bill’s cost. At the same time, some more moderate Republicans were unhappy with the proposed cap on state and local tax (SALT) deductions.

Congress recently returned from a two-week recess as polling showed voters largely disapprove of the White House’s handling of the economy. A CNN poll showed that just 39% of Americans approve of Trump’s steering of the economy, which is the lowest of his two terms in the White House. An NBC News poll showed tariffs were also deeply unpopular. Because of this, there has been mounting pressure on lawmakers to pass a tax bill from the administration.

Republicans must decide how best to implement the rest of Trump’s tax agenda in addition to permanently extending his 2017 tax cuts. Trump has promised to eliminate taxes on tips, overtime, and social security — all three would significantly drive up the cost of the final reconciliation bill. Importantly, extending the 2017 tax cuts would include Bonus Depreciation, which was specifically included in the section passed out of the House Ways and Means Committee (HWM). Their package includes 100% Bonus Depreciation for the next five years, with no phase-out. It remains to be seen if that language will make it into the final text as the bill makes its way through the Senate, though it is expected to remain unchanged in the final text of the bill.

Tariffs Updated, Confusion Ensues

In the past month, the President has made several announcements regarding tariffs. First, he announced a blanket 10% tariff on all imports, with several exceptions (including Canada and Mexico). He also announced retaliatory tariffs on specific countries. Later, the President announced a 90-day pause on these retaliatory tariffs, while keeping the blanket 10% tariffs in place.

He has also started to announce various trade deals, though the terms of these deals are vague. So far deals have been announced with Great Britain and potentially China. It remains to be seen what the terms of these deals will be, or what other countries will announce deals with the U.S. It is expected that more will be announced in the coming weeks.

In the meantime, the NTRA would like to provide some helpful tips when it comes to importing live horses to the US:

  • If you’re importing from Canada or Mexico, you currently do not have to pay the tariffs, as live horses are exempt.
  • If you’re importing from another country to sell in the US, currently you have to pay the 10% tariff.
  • If you’re importing temporarily, you have some options when it comes to importing without having to pay duties. The first is a temporary import bond, which allows for importing into the US duty-free, while only having to pay the bond. The second is a carnet, which is also known as a “passport for goods”. Here, the importer would only have to pay the carnet fees.

The tariffs continue to be a fluid situation, with things changing day to day. Please consult with a customs broker when deciding which option is right for you.

The NTRA and its team continue to work closely with Congressman Andy Barr’s office, the Trump Administration, and officials around the world on this issue.