Category: Roundtable Weekly

National Flood Insurance Program Extended through Nov. 30

Posted on by Trey Jackson

A five-month extension of the National Flood Insurance Program (NFIP) was passed by Congress hours before its scheduled July 31 expiration and signed by President Trump later that day.  The NFIP extension gives the House and Senate additional time to work towards long-term reauthorization.

If the National Flood Insurance Program had lapsed, the Federal Emergency Management Agency would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage. 
  • If the program had lapsed, the Federal Emergency Management Agency (FEMA) would not have been able to issue new policies, and its borrowing authority would have been reduced to $1 billion from $30.4 billion. This would have had major effects on the real estate markets in coastal areas, where a flood insurance policy is mandatory for obtaining a new mortgage. (BGov, July 31) 
  • On July 25 the House voted 366-52 to pass the National Flood Insurance Program Extension Act of 2018 (S.1182), as amended, and on July 31 the Senate followed suit with a vote of 86-12. The measure reauthorizes FEMA to enter into new contracts for flood insurance and borrow from the Treasury up to specified amounts through Nov. 30, 2018 – the ­official end of the Atlantic hurricane season.   
  • The bill received pushback from Senate and House Republicans who wanted reforms to make the NFIP financially sustainable – after more than a decade of historic storms put the program deeply into debt. (CQ, July 25) 
  • A White House statement last week supported efforts to keep the flood insurance program from expiring, but noted Congress needs to enact long-term changes to ensure the program’s long-term viability. (The White House, July 25) 
  • In November 2017, the House passed long term legislation – the 21st Century Flood Reform Act (H.R. 2874) – that would reform and reauthorize NFIP for five years. The bill included: funding for flood mitigation assistance; lower flood insurance rates, support for  the private flood insurance market, modernization of flood zone mapping; and flood mitigation practices for homebuilders and land developers.  However, the measure was not been taken up in committee in the Senate. (Roundtable Weekly, Nov. 17, 2017) 

The Roundtable will continue to work with lawmakers and our coalition partners to assist with NFIP reforms and a long-term reauthorization, that would help protect the nation’s commercial and multifamily business-owners, their properties, and residents.

 

Jobs Originating through Launching Travel (JOLT) Act Introduced to Spur International Tourism and Job Creation Issues

Posted on by Trey Jackson

In a bipartisan effort to spur tourism to the U.S., create jobs, reform outdated visa laws and increase national security, Reps. Mike Quigley (D-IL) and Tom Rice (R-SC) yesterday introduced the Jobs Originating through Launching Travel (JOLT) Act of 2018.

“By improving the visa process, strengthening national security, and welcoming vetted travelers, the U.S. will be able to realize economic benefits at hotels, restaurants, retail store, and attractions around the country,” said VisitU.S. Coalition spokesman Amos Snead.  (VisitU.S. News Release, July 26)

  • Rep. Quigley said, “By updating outdated visa laws, we can drive tourism and job growth in our cities and assist the U.S. intelligence community with their mission to spot and stop terrorist threats. The JOLT Act accomplishes both of those objectives by stimulating economic activity and improving national security.”
  • Rep. Rice added, “The JOLT Act will enhance our economic competitiveness and strengthen national security by modernizing the Visa Waiver Program (VWP), which facilitates streamlined travel into the United States for pre-approved travelers from member countries.”
  • In 2016, 22 million people traveled to the U.S. from VWP countries, accounting for 59% of overseas arrivals to the U.S.  Travelers from these countries generated more than $90 billion for the U.S. economy.  (Rep. Quigley News Release, July 26)
  • The VisitU.S. Coalition applauded introduction of the Act. Coalition spokesman Amos Snead commented, “By improving the visa process, strengthening national security, and welcoming vetted travelers, the U.S. will be able to realize economic benefits at hotels, restaurants, retail store, and attractions around the country,” said VisitU.S. Coalition spokesman Amos Snead.  (VisitU.S. News Release, July 26)
  • Led by the U.S. Travel Association and the American Hotel and Lodging Association, the VisitU.S. coalition  also includes The Real Estate Roundtable, U.S. Chamber of Commerce and the American Resort Development Association. 
  • The coalition is also urging Congress to reauthorize the Brand USA program, which is funded through fees on foreign visitors who do not require a visa when entering the U.S.  Legislation is needed to authorize the program beyond 2020 – and ensure that visitor fees authorized for collection from 2021 to 2027 will not be diverted to the Treasury Department, as currently scheduled. (Roundtable Weekly, June 29)

A panel discussion at The Roundtable’s June 14 Annual Meeting focused on travel and tourism, economic growth and CRE.  Participants included Roger Dow, President and CEO, U.S. Travel Association; Katherine Lugar, President and CEO, American Hotel & Lodging Association; Senator Amy Klobuchar (D-MN) and Anthony E. Malkin  (Chairman and CEO, Empire State Realty Trust).  (Roundtable Weekly, June 15, 2018.)

House Proposal Suggests Gas Tax Increase, Public-Private Partnerships to Fund Infrastructure Improvements

Posted on by Trey Jackson

Rep. Bill Shuster (R-PA), the outgoing chairman of the House Transportation and Infrastructure Committee, released “discussion draft” language on July 23 aimed at improving and sustainably financing U.S. transportation and other infrastructure systems.  (Section-by-Section analysis of the proposal)

Roundtable President and CEO Jeffrey D. DeBoer appeared last summer on CNBC’s Squawk Box, emphasizing the importance of P3s as a platform to finance the design, building, operation and long-term maintenance of projects across all infrastructure asset classes(CNBC, June 7, 2017).

  • Shuster, who is retiring after the upcoming midterm elections, provided a “vision statement” explaining that the draft “is intended to further the national conversation about the current state of America’s infrastructure and highlight some of the major roadblocks to funding and improving our transportation network.”  He stated his proposal reflects “input from Members of Congress from both sides of the aisle” in an effort to build bipartisan support.
  • The wide-ranging draft proposes to phase-in increases to the “pay at the pump” gas tax and then eliminate it after 10 years; pilot a per-mile travelled “user fee”; shore-up the federal loan and guarantee program for mass transit; establish a public-private partnership (P3) program to construct and rehabilitate federal buildings; and establish a one-stop federal permitting shop to expedite project approvals.  (Eno Transportation Weekly, July 23) 
  • Any broad infrastructure policy conversation would likely address federal-state cost sharing arrangements for mass transit projects – such as the Gateway program to improve bridge and tunnel crossings between New York and New Jersey.  For example, a  June 29 letter from Trump Administration transit officials indicated a change in agency policy – that loans by the U.S. Transportation Department, repaid by state and local governments,  should factor into grant decisions.  The effect would be to reduce the amount of federal grants for mass transit and increase the state/local share. (B-Gov, July 3) 
  • Anticipating infrastructure as an issue for possible compromise after the upcoming elections, The Roundtable has offered a number of comments to the Administration and Congressional committees on real estate’s role in creating public-private partnerships to help repair roads, transit, broadband, power grid and other systems that are needed to make communities safe, productive and competitive.  (Roundtable Weekly, January 26) 

Roundtable President and CEO Jeffrey D. DeBoer appeared last summer on CNBC’s Squawk Box, emphasizing the importance of P3s as a platform to finance the design, building, operation and long-term maintenance of projects across all infrastructure asset classes.  Policies starting with streamlined permitting and a range of financing platforms should all be considered by lawmakers as layers in the “capital stack” for infrastructure,” DeBoer told Squawk Box. (CNBC, June 7, 2017)

GOP House Leadership Plans Votes on “Tax Reform 2.0” in September; Technical Corrections Bill After Mid-Term Elections

Posted on by Trey Jackson

House Republican leaders aim to vote on “Tax Reform 2.0” legislation in September, followed by a tax technical corrections bill after the November mid-term elections.

House Speaker Paul Ryan (R-WI), right, and House Ways and Means Committee Chairman Kevin Brady (R-TX), left, pledged action on Tax Reform 2.0.  Ryan said taxwriters are compiling a list of “glitches and issues” in the new tax law that could be in a technical corrections bill.  
  • House Ways and Means Committee Chairman Kevin Brady (R-TX) on Tuesday said a second round of tax cuts would include permanently extending individual tax cuts passed last year in the Tax Cuts and Jobs Act.  Twenty-three provisions in the law relating to individual income taxes are currently scheduled to expire at the end of 2025.  (Tax Foundation, January 18)
  • During the July 17 meeting with President Trump and other members of his committee, Brady said, “We anticipate the House voting on this in September and the Senate setting a timetable as well.” After the meeting, Brady added, “We talked about timing and the importance of this. … We’re very well aligned with the White House on 2.0.”  In a televised interview on Wednesday morning, Chairman Brady expanded on his vision for the next major tax bill, which he said would create 1.5 million additional jobs.  (Fox Business, July 18)
  • Such a bill likely would face significant challenges in the Senate, where it would need Democratic support to pass.  Senate Finance Committee Chairman Orrin Hatch (R-UT) supports making the tax cuts permanent and “will continue to work with his colleagues to find a viable path and timing to achieve this goal,” according to a spokeswoman. (Wall Street Journal, July 19)
  • House Speaker Paul Ryan (R-WI) last week also pledged action on Tax Reform 2.0 and added that a technical corrections tax bill would be introduced after the mid-term elections. Ryan said taxwriters are compiling a list of “glitches and issues” in the new tax law that could be corrected in the bill.  Chairman Brady also confirmed the timeline last week, stating, “We’re continuing to develop the technical corrections. It’s always been assumed that we would want to see how Treasury lays out its rules, from everything from pass-throughs to international.”  (CQ, July 12 and Bloomberg Tax, July 13)

Among the technical corrections needed is a drafting mistake that added nearly a quarter-century to the depreciation life for qualified improvement property that has negatively affected commercial real estate development.  Roundtable SVP and Counsel Ryan McCormick explained at a recent NYU tax conference that while Congress intended for qualified improvement property to receive bonus depreciation — setting the recovery period at 15 years — a drafting error put the recovery period at 39 years.  “In addition to conflicting with the clear legislative intent, this result is … antithetical to the basic direction of the underlying bill,” McCormick said.  (Tax Notes, July 2 and Wall Street Journal, July 10 – “Legislative Mistake Causes Some Companies to Postpone Renovations“)

Treasury Department Reports on Effectiveness of Terrorism Risk Insurance Program

Posted on by Trey Jackson

The federal government’s Terrorism Risk Insurance Program has been effective in making terrorism risk insurance available and affordable throughout the United States, according to a recent report by the U.S. Department of the Treasury’s Federal Insurance Office. 

The  Treasury based its June “Report on the Overall Effectiveness of the Terrorism Risk Insurance Program” on marketplace data collected for the past two years, along with public comments such as those submitted by the broad-based Coalition to Insure Against Terrorism (CIAT), which includes The Real Estate Roundtable.

  • The Terrorism Risk Insurance Program – authorized by the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) of 2015 – provides a federal backstop for certain U.S. property and casualty insurance losses resulting from a certified act of terrorism.
  • TRIPRA directs Treasury to provide reports on the Program’s effectiveness and estimate the total amount of premiums earned on terrorism risk insurance since January 1, 2003.  Treasury published its first Program effectiveness report two years ago.  (Roundtable Weekly, July 8, 2016).
  • In last month’s report, Treasury’s estimate of total earned premiums for terrorism risk insurance from 2003 to 2017 is approximately $37.6 billion (excepting captive insurers).  This amount is between 1 and 2 percent of the total premiums earned in the Program-eligible lines of insurance during that period.  Treasury estimates that an additional $7.4 billion has been earned by captive insurers. 
  • The total of terrorism risk premiums earned is comparable to the loss sustained by the insurance industry in connection with the attacks on September 11, 2001. 
  • While the purchase of terrorism risk insurance is not mandated by the Program, a significant proportion of commercial policyholders nationwide have elected to obtain such insurance, and take-up may be even higher in metropolitan areas at greater risk of terrorism. 

Without Congressional action, the Terrorism Risk Insurance Program, authorized by TRIPRA, will expire on Dec. 31, 2020.  The Roundtable is working with industry partners to develop a proposal that would make terrorism insurance available for the long-term.

Regulators Emphasize Need for Transition Away From LIBOR to New Standard by End of 2021; Roundtable to Address Impact on Commercial Real Estate Finance

Posted on by Trey Jackson

International regulators this week urged banks to speed up their transition plans away from the London Inter-bank Offered Rate (LIBOR) to a new standard for setting the price of trillions of dollars of loans and derivatives worldwide. LIBOR is an important reference rate for commercial real estate and the broader economy, underlying approximately $373 trillion worth of cash and derivative contracts globally. 

The Fed’s Alternative Reference Rates Committee (ARRC) will meet on July 19 to address risks in contract language and actions that could minimize disruptions associated with a possible end to LIBOR.

  • With LIBOR set to expire at the end of 2021, the status of reform efforts and their impact on commercial real estate finance is profiled by Joseph Forte (Sullivan & Worcester) – a member of The Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) – in his recent article, “Après LIBOR: Black Swan or Y2K.” 
  • LIBOR’s credibility was badly undermined a decade ago by a rate-manipulation scandal. These illegal actions damaged the public’s trust in LIBOR, financial markets and institutions. 
  • The United Kingdom’s Financial Conduct Authority (FCA), which regulates LIBOR, announced last year that it will phase out the global borrowing index by 2021.  In December 2018, FCA Chief Executive Andrew Bailey said, “There is some good news to report on the important steps taken towards transition. But the pace of that transition is not yet fast enough. There is much further to go.”  (FCA, “Interest rate benchmark reform: transition to a world without LIBOR“) 

    With LIBOR set to expire at the end of 2021, the status of reform efforts and their impact on commercial real estate finance is profiled in Joseph Forte’s recent article, ” Après LIBOR: Black Swan or Y2K .”  . 
  • The Federal Reserve Bank of New York in April began publishing an alternative U.S. benchmark to work alongside LIBOR – the Secured Overnight Financing Rate (SOFR), which is seen as the next step to transition trillions of dollars in securities away from LIBOR.  SOFR is seen as more reliable, as it is based on interest rates in the U.S. market for repurchase agreements instead of LIBOR’s estimated quotes by bankers in the relatively thin interbank loan market. 
  • Yesterday, The Wall Street Journal reported that international regulators are urging banks to stop using LIBOR for new contracts and plan to accommodate legacy contracts that are set to expire after LIBOR sunsets at the end of 2021.  “Legacy contracts represent arguably the greatest challenge for regulators and industry groups,” according to the July 13 article.   
  • Former President of the Federal Reserve Bank of New York William Dudley spoke about LIBOR in May. “Time is of the essence, and we must manage it well,” he told a Bank of England forum.  “Because of the great uncertainty over LIBOR’s future and the risks to financial stability that would likely accompany a disorderly transition to alternative reference rates, we need aggressive action to move to a more durable and resilient benchmark regime,” Dudley added.  (Reuters, May 24, 2018) 
  • The Fed’s Alternative Reference Rates Committee (ARRC) will meet on July 19 to address risks in contract language and actions that could minimize disruptions associated with a possible end to LIBOR.  See “Alternative Reference Rates Committee Releases Principles for Fallback Contract Language Guiding Principles Mark a Key Milestone in Meeting the ARRC’s Mandate” and the ARRC website for additional information. 

The Roundtable’s RECPAC has formed a LIBOR Working Group to address this challenge and work toward the development and implementation of an effective, new replacement benchmark that does not impair liquidity, needlessly increase borrowing costs or cause market disruptions.

“VisitU.S.” Advocates Reauthorization of Brand USA Travel and Tourism Program; Improving Efficiency of Visa Application Process

Posted on by Trey Jackson

The significant, positive role of international travel and tourism in boosting the U.S. economy, creating American jobs and helping the foreign trade imbalance was the focus of efforts by the VisitU.S. Coalition this week on Capitol Hill. 

A VisitU.S.  coalition video with CEO testimonials  was released to address the drop of 7.4 million international visitors to America from 2015-2017.   Roger Dow, President and CEO of the U.S. Travel Association, above.

  • Roundtable President and CEO Jeffrey D. DeBoer joined coalition CEOs on Wednesday in Congressional meetings. The following day, a coalition video with CEO testimonials was released to address the drop of 7.4 million international visitors to America from 2015-2017.  While foreign travel has increased globally, the U.S.’s reduced market share translates to 32 billion dollars in lost spending and 100,000 fewer jobs in this country. The drop in foreign visitation also widens the foreign trade imbalance, as spending by international visitors is the U.S.’s top service export accounting for 245 billion dollars in total travel exports in 2017.  (Roundtable Weekly, June 8, 2018.)
  • Wyndham Hotel Group President and CEO Geoff Ballotti said, “We have had five or six great years of record growth in terms of international inbounds but the share that we are capturing is continuing to slip and that’s what we are all very focused on – maintaining that great market share.” (VisitU.S. video, June 28) 
  • The coalition is urging Congress to reauthorize the Brand USAprogram, which is not supported by taxpayer dollars, but through fees on foreign visitors who do not require a visa when entering the U.S.  Legislation is needed to authorize the program beyond 2020 — and ensure that visitor fees authorized for collection from 2021 to 2027 will not be diverted to the Treasury Department, as currently scheduled.  
  • An FY2017 return on investment analysis showed each dollar of Brand USA marketing generated almost 28 dollars in visitor spending.  Moreover, Brand USA-generated international visitor spending is estimated to have produced 486 million dollars in federal tax revenue, and another 526 million dollars in state and local tax revenue.  

    The economic importance of foreign travel and tourism to the United States’ economy and commercial real estate industry was the focus of a panel discussion during The Roundtable’s 2018 Annual Meeting this month. 
    – enlarge photo –

  • “Robust international travel helps to power the U.S. commercial real estate markets, not only hospitality properties but retail, attraction, health and investment properties as well,” said DeBoer. “National tourism policies that boost overall economic growth, support and create jobs, and generate revenues help modernize our infrastructure, and generally improve the quality of life in our communities. The Real Estate Roundtable will continue our work with the VisitU.S. Coalition to emphasize that America is a uniquely welcoming, interesting and safe travel destination for international visitors,” DeBoer added.
  • The meetings on Capitol Hill also focused on the need to improve the visa application process for foreign visitors.  Other CEOs joining DeBoer in Wednesday’s congressional visits were Roger Dow with the U.S. Travel Association; Katherine Lugar with the American Hotel & Lodging Association;  Robert Cresanti with the International Franchise Association; Chip Rogers with the Asian American Hotel Owners Association; and Steve Shur with Travel Tech.   

A panel discussion at The Roundtable’s June 14 Annual Meeting focused on the travel and tourism issue.  Participants included USTA’s Roger Dow, AH&LA’s Katherine Lugar, Senator Amy Klobuchar (D-MN) and Anthony E. Malkin  (Chairman and CEO, Empire State Realty Trust).  (Roundtable Weekly, June 15, 2018.)

House Follows Senate in Passing Bills Addressing Foreign Investment Risk; Includes Language Affecting Real Estate

Posted on by Trey Jackson

The House of Representatives on June 26 voted 400-2 to pass legislation (H.R. 5841) that overhauls federal review of transactions involving foreign companies or countries, including certain real estate transactions. The Senate on June 18 passed its version of the legislation (S. 2098).  (Dechert, June 2018) 

Both the House and Senate FIRRMA bills would expand the list of covered transactions to include some foreign purchases and leases of real estate near military and other strategic facilities.

  • The bills would update the review authority of the Committee on Foreign Investment in the U.S. (CFIUS) to review national security implications of transactions that could result in control of a U.S. business by a foreign person – and to block transactions or impose measures to mitigate any threats to U.S. security.
  • Both the House and Senate bills would expand the list of covered transactions to include some foreign purchases and leases of real estate near military and other strategic facilities.  Responding to concerns raised by The Roundtable and other industry groups, each bill includes similar language designed to exempt real estate located in ‘urbanized areas’ from the criteria of a covered transaction.  [See Title II, Sec. 201in the House’s Foreign Investment Risk Review Modernization Act of 2018 (FIRMMA) and for S. 2098, see  pages 7 through 9].  The Census defines an urbanized area as one comprising more than 50,000 people.

While the House and Senate bills are similar, the definition of “critical technology” differs and will require reconciliation before a final vote in each chamber. The Trump Administration has shown support for reforming FIRRMA to strengthen CFIUS’ oversight.

Supreme Court Rules States Can Collect Sales Tax from Online Retailers; Uniform Collection Standards Present Significant Challenge

Posted on by Trey Jackson

The Supreme Court yesterday ruled 5-4 in South Dakota v. Wayfair to expand States’ authority to collect sales and use taxes on Internet consumer purchases from retailers who do not have a physical presence in a state. 

The Supreme Court yesterday ruled 5-4 in South Dakota v. Wayfair to expand States’ authority to collect sales and use taxes on Internet consumer purchases from retailers who do not have a physical presence in a state.

  • Real Estate Roundtable President and Chief Executive Officer Jeffrey DeBoer commended the Court’s long-anticipated ruling.  He noted the decision “rejects an antiquated ‘physical presence’ standard. That test exempted on-line retailers from collecting sales and use taxes – yet imposed those obligations on traditional ‘brick-and-mortar’ retailers.  DeBoer also noted the ruling “will enable states to collect much-needed revenue to provide public services and invest in local infrastructure projects.”  (Roundtable Statement, June 21)
  • The Roundtable on March 5, 2018 joined The International Council of Shopping Centers (ICSC), Investment Program Association, Nareit®, the National Association of REALTORS® , the National Multifamily Housing Council, NAIOP, the American Farm Bureau Federation and the South Dakota Farm Bureau Federation in filing an amicus curiae brief.  (Roundtable Weekly, March 9) 
  • While the Wayfair decision overturns previous case law, it also creates the potential for a patchwork of state-level collect and remit statutes, which may lead to efforts by Congress to simplify States’ tax collection practices. 
  • Justice Anthony Kennedy wrote in the majority opinion: “Eventually, software that is available at a reasonable cost may make it easier for small businesses to cope with these problems. Indeed, as the physical presence rule no longer controls, those systems may well become available in a short period of time, either from private providers or from state taxing agencies themselves. And in all events, Congress may legislate to address these problems if it deems it necessary and fit to do so.” (Supreme Court opinion, South Dakota vs. Wayfair) 
  • In the dissent, Chief Justice John Roberts reflected his belief that the decision could preclude a federal solution from Congress: “Armed with today’s decision, state officials can be expected to redirect their attention from working with Congress on a national solution, to securing new tax revenue from remote retailers.” (Supreme Court opinion, South Dakota vs. Wayfair) 

ICSC President and Chief Executive Officer Tom McGee said, “We understand this is a major step in a long process, but look forward to working with policymakers and business owners to find state-level legislative solutions which promote fairness and competition.” (CoStar News, June 21) 

The Roundable’s DeBoer added, “We stand ready to assist policymakers should they respond to today’s decision with legislation that provides our nation’s businesses with fair standards to collect the tax that is owed on online sales.”  (Roundtable Statement, June 21)

Six-Month Anniversary of Tax Reform Showing Success; House Ways and Means Committee Chairman Kevin Brady Awarded Roundtable’s “Champion of the Economy” Award

Posted on by Trey Jackson

Marking the half-year anniversary of the final passage of the Tax Cuts and Jobs Act (TCJA), House Ways and Means Committee Chairman Kevin Brady (R-TX) joined Speaker Paul Ryan (R-WI) and Secretary of the Treasury Steven Mnuchin in recognizing the law’s benefits to American taxpayers and businesses.  (Video, National Association of Manufacturers, June 21)

  House Ways and Means Committee Chairman Kevin Brady (R-TX), center, was awarded The Real Estate Roundtable’s Champion of the Economy Legislative Leadership Award for his efforts on the Tax Cuts and Jobs Act. 

 

  • “In the six months since we reformed the tax code, we have the fastest growth in investments, new equipment, and technology since 2011. We’ve now seen almost nine out of ten manufacturers increase their investments—investing in their business, workers and their future.”  (Brady remarks, June 21).  Brady also touted tax reform’s results to-date in a Wall Street Journal commentary, “Six Months After Tax Reform, Something Big Is Happening.” 
  • Chairman Brady was awarded The Real Estate Roundtable’s Champion of the Economy Legislative Leadership Award last week for his efforts on the TCJA. 
  • Roundtable President and CEO Jeffrey DeBoer and Roundtable Chair William C. Rudin (Co-Chairman & CEO, Rudin Management Company, Inc.) presented the award during The Roundtable’s 2018 Annual Meeting.  DeBoer said, “Consumer confidence is at a 17-year high. Nearly one million jobs have been created since tax reform passed.  The 3.8 percent unemployment rate has been matched only once since 1969.  Wage growth is accelerating – 2.8 percent year-over-year last month.  GDP growth is widely expected to come in well over 3 percent in the second quarter.  All of this is happening as inflation remains stable near the Fed-targeted rate of 2 percent. In short, the bill has kick started the American economy and extended the economic cycle.”
  • DeBoer added, “Chairman Brady successfully achieved what he set out to achieve—a positive investment environment, greater job growth, and more money in the pockets of American families and businesses.”

In his acceptance comments, Brady noted that the Ways and Means Committee is “continuing to clarify new parts of the tax code, work with Treasury and get technical corrections made.”  Brady also said his goal is to continue encouraging growth and investment.  “Early signs are very encouraging. The best is yet to come.”