Rep. Tom Reed (R-Corning)

WASHINGTON – Chautauqua County’s representative in Congress says the Federal Tax cuts that were approved at the end of last year are paying dividends for rank and file workers, and he used a recent visit to the Jamestown Home Depot to make that point.

But as Congressman Tom Reed (R-Corning) was making the case that the tax cuts are helping everyday Americans at one department store chain, his counterparts on the other side of the aisle are demanding that another major retailer show evidence that the tax cuts are helping its employees.

This week’s Reed’s office sent out a media release stating that during a recent tour of the Home Depot, he heard the impact tax cuts from the Tax Cuts and Jobs Act of 2017 have had on its employees. As part of the release, Reed’s office also said that businesses such as Home Depot and many others have given pay raises and bonuses thanks to the tax reform.

“Visiting places like Home Depot and talking with the employees is one of the best parts of the job,” Reed said. “Tax cuts have helped people, like the ones I met during my visit, keep real money in their paychecks and helped good-paying jobs to grow. This why we care about making these tax cuts permanent and feel it is the fair thing to do after hearing from people across our community.”

Rep. Tom Reed, standing with a group of employees, during a recent visit at Jamestown’s Home Depot.

Making the tax cuts permanent is the foundation of the “Tax Cuts 2.0” proposal that was rolled out by House Republicans earlier this month, which would make the 2017 tax cuts for individuals permanent. The proposal is viewed as an effort to highlight their signature economic policy achievement ahead of the November elections.

According to Reed, “Tax Cuts 2.0” will create an estimated 1.5 million new jobs, increase wages by 0.9 percent and boost the GDP an additional 2.2 percent. He said the proposal would also help local business provide retirement plans for employees, help workers participate in those retirement plans, and allow families to access their own retirement plans on a penalty-free basis when welcoming a new child – either by birth or adoption.

Still, with little chance of Senate Republicans taking up the measure, the effort is largely viewed as a way to promote political talking points.

13 HOUSE DEMOCRATS CALL ON WALMART TO SHOW HOW TAX CUTS BENEFIT WORKERS

Meanwhile, as Reed praised the GOP Tax Reform effort from a year ago, Democrats (including Brian Higgins who represented Chautauqua County until redistricting went into effect in 2012) are singing a different tune.

Congressman Brian Higgins

In a Sept. 13 letter sent to CEO Doug McMillon, 13 different house members pointed out that Walmart – the nations largest department store chain – authorized $20 billion in stock buybacks while many of its workers still make poverty wages.

The letter further calls attention to the 1,188-to-1 ratio between McMillon’s 2017 compensation and the average Walmart worker’s, stating “it is not clear how your corporation is using your expected $2.2 billion in annual tax cuts to help your more than 1.4 million workers in the U.S.”

The members are asking McMillon to respond to the letter and corresponding questions by no later than September 28, 2018.

The letter (posted in its entirety below) was signed by Higgins along with Reps. Jan Shakowsky (D-IL), Mark Pocan (D-WI), Raúl Grijalva (D-AZ), Rosa L. DeLauro (D-CT), Gene Green (D-TX), Pramila Jayapal (D-WA), Marcy Kaptur (D-OH), Barbara Lee (D-CA), Eleanor Holmes Norton (D-DC), Bobby L. Rush (D-IL), Tim Ryan (D-OH), and Mark Takano (D-CA).

“Republicans spent their day trying to pass the #TaxScam2 through the Ways And Means committee,” tweeted Rep. Jan Shakowsky (D-IL) on Sept. 13. “Meanwhile, I, Rep. Mark Pocan, Rep. Raul Grijalva and several of our colleagues sent a letter to Walmart asking why their savings from the first #GOPTaxScam aren’t increasing wages.”

Prior to the letter’s submission, a group known as Making Change at Walmart (MCAW) provided members of congress with hundreds of testimonies from Walmart workers whose wages fall far below the company’s average claim of $13.75 an hour.

MCAW also provided testimony on wage stagnation at Walmart, as well as the negative impacts of Walmart’s inadequate benefits, irregular scheduling, and elimination of holiday pay.

“Almost immediately after the Trump tax cuts were approved, Walmart’s board sought to stuff the pockets of its shareholders by authorizing up to $20 billion in stock buybacks,” says MCAW communications director Amy Ritter. “Meanwhile, the company still has no long-term solutions to address the fact that many of their employees are struggling in poverty.”

LETTER FROM 13 MEMBERS OF CONGRESS TO WALMART CEO DOUG MCMILLON

New York State is one of several states that have moved to let residents circumvent the new $10,000 federal cap on state and local tax (SALT) deductions. But the IRS issued a notice on Wednesday that challenges the states’ efforts.

The cap on SALT deductions would mean that property owners across the country could only write-off the first $10,000 they pay state and local taxes.  The cap would have little impact on the vast majority of residents in Chautauqua County, although it would have a significant impact on those taxpayers on the other  side of the state, who could decide to move to another state with lower taxes as a way to reduce their SALT contribution.

New York was first out of the gate, approving a measure in this year’s state budget that give wealthy taxpayers the option of making charitable contributions to not-for-profit, state-run funds financing education and healthcare. Taxpayers could get a state tax credit worth 85 percent of their contribution. And they could deduct 100 percent of their contribution on their federal return, since there is no cap on charitable deductions.

But the Treasury and IRS may rule against that strategy in proposed regulations that the agencies said they will issue “in the near future.”

NY Governor Andrew Cuomo

Governor Andrew Cuomo, who has described the SALT deduction cap as an “economic missile” launched by Republicans on Democratic states, made clear Wednesday afternoon the state won’t just roll over.

“The federal government passed a disastrous tax bill that put corporations over people and specifically targeted New York and other Democratic states with the elimination of full state and local tax deductibility,” Cuomo said in a released statement. “New York was the first to take action to protect our residents from this hostile assault and ensure New York families weren’t being used as a piggy bank to pay for tax cuts for big corporations.

“Now, the administration appears poised to attack again through new tax regulations, showing its true hostility to New Yorkers and middle-class taxpayers. It is particularly ironic that Donald Trump is in Long Island today while the IRS aims its sights on Long Island homeowners.

“Make no mistake: We have been and will continue to fight against this economic missile with every fiber of our being. The IRS should not be used as a political weapon, and I urge this administration to stop its partisan assault on New Yorkers and instead work with us to deliver real, lasting relief for hardworking families.”

• MOBILE APP USERS: LISTEN HERE

Congressman Tom Reed talks with regional media during his weekly conference call on Tuesday, Jan. 9, 2018. Among the items discussed is his agenda for 2018, which includes a bill to address infrastructure funding, welfare reform, college tuition, and dairy farming. He also discusses the effort to keep passenger air service available at the Chautauqua County Airport in Jamestown, as well as his thoughts on Marijuana and removing it as a schedule 1 illegal drug.

Rep. Tom Reed (R-Corning)

Rep. Tom Reed (R-Corning)

WASHINGTON – The first major federal tax overhaul in more than three decades has been approved by congress and now awaits the signature of the president.

After clearing the House and Senate, the GOP’s Tax Cuts and Jobs Act is on its way to the President’s desk to await his signature.

Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary tax relief to middle-class Americans.

The House approved the measure by 224-201, passing it for the second time in two days after a procedural foul-up forced another vote on Wednesday. The Republican-led Senate had passed it 51-48 in the early hours of Wednesday.

Congressman Tom Reed (R-Corning, NY-23), a member of the tax writing Ways and Means Committee, said the legislation ensures historic tax cuts for hardworking Americans and the launch of a new era of economic opportunity, growth and job creation.

He also said that while the tax bill is written to offer temporary tax relief, he believes the cuts will be extended before sun-setting in eight years.

“There are sun-setting provisions that hit corporations, businesses, and individuals,” Reed said during a conference call with regional media on Wednesday morning. “Mostly on the corporations and business side we are dealing with the expense provisions being temporary. Obviously this was driven by DC bureaucrats. I’m very confident that when we get to that eight-year window for those sunset provisions that they will be dealt with by Congress appropriately and responsibly and no one is going to, I believe, allow those sunsets to occur.”

Another criticism of the tax bill is that it removes the enrollment mandate for the Affordable Care Act. Many fear that as a result, health insurance rates will go up because fewer healthier people would be part of the insurance pool.

Ian Golden

Democratic Congressional Candidate Ian Golden of Ithaca, who hopes to challenge Reed in next November’s general election, explains.

“For those of us that do have to buy insurance, whether – speaking for myself – as a small business owner or for my family, that is going to mean that my premiums are going to be going up that much more to counter-balance the healthier people who are not being forced to buy into the plan,” Golden said during a phone interview with WRFA on Wednesday.

Reed said he supports the elimination of the mandate, but also added there are other mechanisms included in the final tax reform plan to provide help for those who are unable to afford health insurance payments.

“I think it gives the people the ability to choose where they want to buy their health insurance. And remember we did not repeal the premium tax credit assistance program that is out there. If people engage in the process – they’ll do what they need to do to protect their families and themselves –  using the tax credits to get help to get health insurance is still on the books and is available,” Reed countered.

Eddie Sundquist

Another potential opponent of Reed, Jamestown attorney Eddie Sundquist, sent a media release on Wednedsay calling the tax reform plan a tax scam that will give corporations and the GOP’s wealthiest donors significant tax breaks at the expense of New York families.

Sundquist said the GOP’s elimination of the State and Local Tax (SALT) deductions means that middle-class families in New York will have to pay federal taxes on income that went to state and local governments, effectively a double tax.

The final plan limits deductions of state and local income and property taxes, known as SALT, to $10,000.

“I am incredibly disappointed that Tom Reed would vote for a bill that would do more harm to his constituents than good,” Sundquist said. “While he claims this will help families in our district, elimination of deductions like the state and local tax deductions will do the opposite – and the cuts to entitlements like Medicare & Medicaid will be devastating.”

Reed has said that provision will not affect most of the residents in his district because very few pay over $10,000 in annual state and local taxes. However, critics say it will create a chilling effect in New York State, because those with high enough incomes who would be impacted may decide to move out of the state to save money, forcing the remaining residents to cover the lost tax income in Albany.

Democratic-leaning states, including New York, are expected to take legal action to challenge the SALT cap and even though such lawsuits would face long odds, they could help galvanize Democrats for next year’s mid-term election.

Sundquist also said Congressman Reed is a direct beneficiary of a newly added provision that gives a tax break to those who own LLCs, something that will personally benefit him. Reed and his wife take income from two LLCs: R&R Properties, LLC, and R&R Resource Recovery, LLC – a medical collections business.

“One of the few people who comes out ahead in this deal is Tom Reed himself. It’s alarming to hear that Reed’s yes vote comes after the GOP added a special provision to cut taxes for those who own LLCs. Reed and his family own two, and this provision would lower taxes on the income his family takes from them,” the Jamestown Democrat said.

Sundquist said that as a member of the House Ways and Means Committee, Reed was directly involved in determining the provisions that ended up in the final bill and he should be held accountable for the long-term consequences the plan will have on the public.

• MOBILE APP USERS: LISTEN HERE

Congressman Tom Reed (R-Corning, NY 23) holds a conference call with regional media to discuss the passage of the final Tax Reform Bill in Congress.

Rep. Tom Reed (R-Corning)

• MOBILE APP USERS: LISTEN HERE

Audio from Congressman Tom Reed’s (R-Corning, NY 23) Town Hall Meeting, which was held on Saturday, Dec. 16, 2017 at the Kennedy Volunteer Fire Department in Kennedy, NY.

The congressman used the town hall as an opportunity to discuss the GOP Tax Reform plan with constituents, as well as address other questions, comments and concerns they brought forward, including those related to the FCC’s recent repeal of Net Neutrality regulations.

Rep. Tom Reed (R-Corning)

WASHINGTON – Republicans will try to muscle their massive tax bill through the House on Thursday.

The plan, which was approved in the House Ways and Means committee last week, has garnered support from most of the GOP in the house including Rep. Tom Reed (R-Corning, NY 23), all but assuring it will see passage by the end of the week.

Supporters say the bill would put more money back into the pockets of middle class Americans, with Reed saying the average family in his district would see a $1600 annual savings. Republicans also say the savings to corporations will allow them to reinvest in the economy by creating more jobs.

But not everyone is in support of the overhaul plan, which would cut federal revenues by $1.5 trillion over ten years, with the majority of that savings going toward corporations and big business. Critics say the plan is nothing more than a tax break for the wealthy on the backs of the working and middle class, with poor Americans also being effected due to threats to entitlement programs that will be needed to offset the tax cuts.

Another group that could see an impact are developers and preservationists who want to renovate and improve aging buildings. Both the House and Senate tax reform plans would either eliminate or scale back the federal historic tax credit, which critics say would be “a death blow” to older neighborhoods and small towns across the country.

Currently, the tax credits allow developers of “certified historic structures” to deduct up to 20 percent of rehabilitation costs. It goes toward “income generating” properties, like commercial buildings or apartments, and cannot be used to rehabilitate a private residence.

The program has been in place since 1976 and it has leveraged more than $84 billion in private investment to preserve 42,293 historic properties across the United States, according to the National Park Service.

With its large population and aging building stock, New York State ranked first in the nation last year in the use of the federal tax program. Currently, you can also couple the 20 percent federal credit with a 20 percent state income tax credit. As a result, the owner or developer can use the credits to offset their own tax liabilities, or they can sell the credits to one or more investors. The money freed up by these credits creates a pool of capital to devote to the renovation project, thus incentivizing development on buildings that desperately need the attention.

The historic Wellman Building at the southwest corner of Third and Cherry Streets in Jamestown. (Photo by Jason Sample)

The two most recent Jamestown buildings to take advantage of the tax credit were the Wellman Building and the former Erie Railroad Station. With the recent spike in downtown development and growing interest from developers, access to tax credits could potentially enable millions of dollars in new investment in Jamestown.

But the house plan that could reach a vote as soon as Thursday would completely eliminate the historic tax credit, while a separate Senate plan would cut the credit in half from 20 percent to 10 percent.

Congressman Reed earlier this month said that he supports the credit and was working to find a way to keep it in the final tax reform bill.

“We are working every angle. Also are our partners in the Senate,” Reed said during a conference call with regional media on Nov. 2. “So we have a plan A and we have a plan B and as we go through this process I just ask you to bear with us because I know the benefits of this program and I’m very interested with many members that want to see this credit continue.”

Reed also said, though, that even if the final version of the bill were to not include the full 20 percent historic tax credit deduction or the complete elimination, it still wouldn’t prevent him from voting yes on the tax reform plan.

“If you hold out for 100 percent purity, that leads to obstruction and gridlock,” Reed said. “I’m a Ronald Reagan guy. I’m a Jack Kemp guy. I believe that 80 percent of a loaf is not a defeat. That is a victory you should celebrate and then come back at it and keep fighting for the rest of what you’re fighting for.”

Passage of the tax reform plan seems assured Thursday in the House, where a handful of dissidents conceded they expected to be steamrolled by a GOP frantic to claim its first major legislative victory of the year.

But it’s a different story in the Senate, where the tax overhaul hit a roadblock Wednesday as Sen. Ron Johnson of Wisconsin became the first Republican senator to say he opposes his party’s politically must-do tax legislation.

That signaled potential problems for GOP leaders in the Senate, who can ill-afford to lose any votes on the plan since they only hold a narrow majority over the Democrats, who, like their counterparts in the House, are expected to not support the proposal.

Editor’s Note: A previous version of this story incorrectly gave the total cost of the tax plan as $2.5 trillion, which was incorrect. The actual total is $1.5 trillion.

• MOBILE APP USERS: LISTEN HERE

Rep. Tom Reed (R-Corning)

Congressman Tom Reed (R-Corning, NY 23) holds a conference call with regional media on Thursday night, Nov. 2, 2017 to discuss the GOP Tax Reform Plan.

Earlier in the day, Republican lawmakers unveiled their proposal for a sweeping rewrite of the tax code, outlining a $1.51 trillion plan, with two-thirds of that amount benefiting corporations and businesses that Reed said will help to spur job growth. In addition, the plan offers more modest savings for middle-class families. Reed championed that portion of the plan, saying that a family of four would benefit by seeing an annual tax cut of $1600 when taking a standard deduction.

The plan is far from final. It will be taken up on the House floor next week and must also be approved by the Senate. But Republicans in congress are hopeful they can work through the bill and get their difference reconciled so it can be signed by the president by the end of the year.

U.S. Sen. Charles Schumer and NY Gov. Andrew Cuomo

CANANDAIGUA – Governor Andrew Cuomo and Senator Chuck Schumer launched a statewide push across congressional districts Monday to urge New York’s delegation to stand up for the middle class and oppose the repeal or reduction of state and local tax deductions (Also known as “SALT” deductions) in the proposed tax plan.

According to governor Cuomo, if the Republican tax plan recently introduced in Washington were to pass, many New Yorkers could be saddled with a tax increase of thousands of dollars. They also say that eliminating or reducing the state and local tax deduction would have ripple effects of decreasing home values in the region and placing pressure on state and local governments to reduce their taxes and cut spending on education and their local fire and police departments.

In September the city of Jamestown also unanimously approved a resolution calling for the federal government to not eliminate or reduce the SALT deduction and it was signed the following day by Mayor Sam Teresi.

Cuomo and Schumer discussed the issue while standing with homeowners in Canandaigua, which sits on the border of Congressman Tom Reed’s 23^rd congressional District (which includes Chautauqua County) and Chris Collins 27^th Congressional District. Both Republicans are expected to support the SALT elimination.

In response to the press event by Cuomo and Schumer, Rep. Reed released a statement on his Facebook page.

“I believe a compromise position regarding the state and local tax deduction is achievable. In fact, I have discussed including a credit for state and local taxes which will ensure a tax cut for the hardworking local property taxpayers of New York State. I care about cutting taxes for the middle class,” Reed said on his Tuesday morning Facebook post.

He also took aim at Schumer and Cuomo for their press event.

“Sen. Schumer and Gov. Cuomo have spent years championing how the wealthy one percent need to pay their fair share; our proposal does just that. As a result, Schumer and Cuomo will be proven to be the biggest hypocrites in New York political history, as they are the ones actually protecting the one percent at the expense of the rest of us,” Reed said.

According to the Institute for Taxation and Economic Policy, in New York, 23 percent of taxpayers making $65,900 to $111,100 would see an average tax increase of $460 and 42 percent of taxpayers making between $111,100 and $240,900 would see an average tax increase of $1,960 next year.