House Democrats Propose Additional Tax Relief and Reform Measures in HEROES Act

On May 12, the House Democrats introduced an aspirational tax package within the Health and Economic Recovery Omnibus Emergency Solutions Act (the “HEROES Act”), which lays out their starting point in negotiations with the Senate and provides insight into the top Democratic legislative tax priorities.

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“Although the HEROES Act tax provisions represent a bid by one party caucus on tax policy, it is a useful index on where House Democrats are as they shape tax policy. This legislation is aspirational but has practical implications: some of these ideas may become law, now or even in the next Congress. Embedded in political messages, corrections, and consensus opportunities are a few key ideas. The net operating loss provision will open a contentious debate on how to target and simplify efforts to get liquidity back to impacted firms. The temporary lifting of the cap on SALT deductions is a clever and targeted (if regressive) bid to reverse a key policy change in the Trump tax regime on behalf of swing voters in high tax, affluent communities. We can expect to hear more about both.”