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aRTiCLeS


          CFPB Director Cordray Leaving                           interest deduction will affect taxpayers primarily in higher cost

          Position                                                areas, like Massachusetts. Individual taxpayers would see the
                                                                  number of tax brackets shrink from seven to three and fewer
          Consumer  Financial  Protection  Bureau  Director  Richard   households would be in the top bracket of 39.5 percent. The
          Cordray announced he will be leaving his position, effective the   measure also eliminates the Alternative Minimum Tax (AMT)
          end of November.                                        and phases out the estate tax over a period of several years.
                                                                  Unfortunately, the Republican bill also does not address the
          Cordray, the first director of the CFPB, is thought to be   issue of credit union taxation.
          considering a bid as governor of his home state of Ohio in next
          year’s election, although he has not confirmed this nor launched   To view the bill visit: https://waysandmeansforms.house.gov/
          an official campaign.                                   uploadedfiles/bill_text.pdf
          He was confirmed as head of the CFPB in 2013 by President   To dview the bill summary visit: https://waysandmeans.
          Barack Obama.                                           house.gov/wp-content/uploads/2017/11/WM_TCJA_
                                                                  PolicyHighlights.pdf
          Sweeping House Tax Reform

          Bill Introduced                                         Trump Names Jerome Powell
                                                                  as Fed Chairman
          House Republican leaders
          released a draft of tax reform                          President Trump named Federal
          legislation  that  makes                                Reserve Governor Jerome Powell as
          numerous changes to the                                 chairman of the Fed. Powell first joined
          tax code  for  corporations                             the board in 2012 and has played a
          and individual taxpayers.                               major role in bank supervision and
          The more than 400-page                                  payments systems activities while on
          bill also includes a number                             the board.
          of provisions that will have a direct and indirect effect on the   A lawyer by training, Powell’s pre-
          banking industry.                                       Fed  experience  includes  work  as  an
          Key provisions in the bill include:                     investment banker, as a senior Treasury   Jerome Powell
                                                                  official during the George H.W. Bush
            •   A corporate income tax rate for C-corporations of 20   administration and as a private equity
               percent
                                                                  investor. If confirmed, he will be (with a brief exception during
            •   An income tax rate of 25 percent for passive income   the Carter administration) the first non-economist to chair the
               from “pass-through” entities, including Subchapter S   Fed since 1970.
               banks (with potential restrictions on the ability of active
               shareholders to claim the lower corporate rate)    New Article Offers Strategies

            •   Restrictions on net interest deductibility, with businesses   for Managing Equifax Breach
               whose average gross receipts exceed $25 million
               prohibited from deducting net interest expense exceeding   Earlier this fall, the Equifax
               30 percent of adjusted taxable income              data breach exposed the
                                                                  personal information of 145.5
            •   A reduction in the mortgage interest deduction from $1   million people and raised
               million to $500,000 for new purchase mortgages
                                                                  questions for banks about
            •   Eliminating the deduction for deposit insurance   their relationships with the
               premiums for banks with over $50 billion in assets and   credit reporting bureaus. The
               phasing in the elimination for banks with $10-50 billion   latest article from the ABA Banking Journal’s “Third-Party
               in assets                                          Tactics” series provides regulatory perspective on how banks

            •   Broadening the tax base by eliminating new markets and   should approach the Equifax data breach from a third-party
               historic tax credits and net operating loss carrybacks  risk management perspective.

          In addition, the draft repeals the current deductibility for state   ABA VP Krista Shonk and SVP Nessa Feddis recap key
          and local income taxes and caps the deduction for property taxes   takeaways from ABA’s recent meeting with regulatory staff on
          at $10,000. This, combined with the lower cap on the mortgage   the data breach. They encourage bankers to conduct a careful



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