Featured Articles

Trump Signs Tax Corrections, Spending Bill Into Law

Posted on March 26, 2018 by Asha Glover

President Trump has signed into law a series of tax law corrections, including the “grain glitch” fix and changes to partnership audit provisions, as part of a $1.3 trillion spending bill. 

The Consolidated Appropriations Act, 2018 (H.R. 1625) includes an expansion of the low-income housing credit through 2021 and makes changes to the section 199A provisions in the Tax Cuts and Jobs Act (P.L. 115-97) that provided farmers with an incentive to sell their grain to agriculture cooperatives instead of independent grain companies.

It also includes dozens of technical corrections to tax provisions enacted under the Bipartisan Budget Act of 2015 (P.L. 114-74) — including the partnership audit changes — and under the Protecting Americans From Tax Hikes (PATH) Act of 2015 (P.L. 114-113) and the American Taxpayer Relief Act of 2012 (P.L. 112-240).

The Joint Committee on Taxation estimated (JCX-7-18) that the revenue provisions in the bill will cost $2.7 billion over 10 years. The housing credit expansion is estimated to reduce revenue by $2.8 billion, while the change to the grain provision will raise $108 million.

The bill, which funds the government through September, also includes $320 million for the IRS to implement the TCJA on top of the $11.1 billion budget for the agency. 

In remarks after signing the bill March 23, Trump said that he considered vetoing it and added that he would never sign another bill like it. “Nobody read it; it’s only hours old. Some people don’t even know what’s in it,” he said.

Trump also called on Congress to pass legislation giving him a line-item veto for all government spending bills and to end the filibuster in the Senate “to prevent the omnibus situation from ever happening again.”

The Senate passed the bill the morning of March 23 in a 65-32 vote. The House passed it March 22 in a 256-167 vote. 

Follow Asha Glover (@AshaSGlover) on Twitter for real-time updates.