Tax reform will be hotly contested
in Washington this year, as groups campaign to retain valuable tax breaks for
their clients and respective industries. Partisan divide over the goals of tax
reform may be even more controversial in 2014, with Democrats seeking to raise revenues
and Republicans advocating for a revenue-neutral reform bill.
MRAA remains concerned that 2014 tax
reform will include elimination of (or a significant reduction in) the second-home
mortgage interest deduction that’s often used to validate the cost of boats
purchased by many middle class Americans.
Tax-writing Congressional leaders
Rep. Dave Camp (R- Michigan) of the House Ways and Means Committee and Sen. Max
Baucus (D-Montana) of the Senate Finance Committee worked on a major tax reform
bill last year that closed several loopholes and deductions — including
consideration of the second home mortgage deduction. But Congressional gridlock
prevented the bill from being presented for a vote.
Rep. Camp is pushing forward in 2014
to complete the tax reform. He does not support the budget-busting tax extender
bill, and both Rep. Paul Ryan (R-Wisconsin) and Sen. Patty Murray
(D-Washington) omitted reauthorization of tax extenders from their two-year
budget bill passed in December 2013.
MRAA is monitoring the issue of tax reform closely
and will provide updates as new information becomes available throughout the