NTRA is actively monitoring the steady stream of tax reform measures that have emerged as lawmakers work overtime to address the debt ceiling crisis. In the current environment, every provision in the tax code is under intense scrutiny and every industry – including horseracing –must be alert to both threats and opportunities.
One deficit reduction plan is drawing particular interest. A bipartisan group of six Senators, known as the Gang of Six, introduced a proposal to cut the nation’s deficit by more than $3.6 trillion over the next decade. According to a summary from the Gang of Six, the plan uses a two-step legislative process: (1) an initial bill that makes immediate cuts; and (2) a process for a second bill to enact comprehensive reform.
A significant portion of the plan includes fundamental changes to the tax code. For example, the Gang of Six calls for permanently repealing the $1.7 trillion Alternative Minimum Tax. It also outlines the reform of a wide variety of tax expenditures including those for charitable giving, retirement and homeownership, which could result in an end to the current home mortgage tax deduction—the centerpiece of most taxpayers’ itemized deductions.
President Obama referred to the plan as a “very significant step.”
For updates on reforms that may impact horseracing, visit www.SupportHorseRacing.org