How the Trump Republican Tax Cuts Are Helping Illinois
Illinois is benefiting greatly from the Tax Cuts and Jobs Act enacted by congressional Republicans and President Trump:
856,800 Illinois households are benefiting from the TCJA’s doubling of the child tax credit.
Every income group in every Illinois congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.
4,137,270 Illinois households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.
162,920 Illinois households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.
Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Illinois residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Nicor Gas, Illinois American Water, Commonwealth Edison, and Ameren Illinois (see below) all passed their tax savings on to their customers.
Thanks to the tax cuts, Illinois businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:
Rockford Ball Screw (Rockford, Illinois) - Hiring 25 new employees, expanding plant by 30,000 square feet:
Linda McGary broke ground Thursday on a 30,000-square-foot expansion at Rockford Ball Screw, the manufacturing firm her father launched in 1973 in the basement of their family home.
McGary, 56, is quick to point out that she’s neither an engineer nor a skilled machinist, but she has a clear vision for Rockford Ball Screw: growth.
The company of 70 employees is looking to hire 25 more as part of the expansion — to be completed by mid-November — at its 60,000-square-foot plant in Southrock Industrial Park. Manufacturers often green light expansions after landing a big purchase order that will outpace present capacity, but that’s not the case with Rockford Ball Screw.
Fueling her company’s expansion, McGary said, are lower corporate tax rates and rules under the Tax Cuts and Jobs Act signed into law last year by President Donald Trump. And Rockford Ball Screw has a promising shot, she said, at reviving a business relationship with a firm that years ago was one of its biggest customers. - June 28, 2018, Rockford Register Star article excerpt
Atlas Tool Works, Inc. (Lyons, Illinois) – increased 401(k) contributions for employees:
In the wake of the bill’s passage, some national companies issued well-publicized bonuses to their employees. Participating companies included AT&T, Bank of America, Comcast and Walmart, as ConservativeActionNews.com reported.
Mottl told Roskam his firm had followed suit, increasing the 401(k) contribution to workers. – June 28, 2018 DuPage Policy Journal article excerpt
Pig Minds (Machesney Park, Illinois) – Because of the Tax Cuts and Jobs Act, the brewery was able to create new jobs:
Illinois breweries have 26 days until a tax break expires. That's why hundreds of small businesses are coming together to ask congress for an extension.
For Shane Johnson, expanding Pig Minds in Machesney Park is going to make a huge difference in the way it does business.
"We are getting ready to expand our brewing capabilities, add a canning line so we can get a bigger footprint out and keep up with demand. We have a problem with keeping up with demand with two of our beers, especially in the summer time. This is going to alleviate that problem," said Pig Minds General Manager Shane Johnson.
One way the brewery was able to expand is with a little help saved from the Federal Excise Tax (FET) rate. The Illinois Craft Brewers Guild says since 2017, the tax break has saved breweries money by lowering the cost of barrels from $7 each to $3.50 each. – Dec. 5, 2019, WREX article.
Sko-Die (Morton Grove, Illinois) - 3% wage increase, investing $1 million in new equipment:
Sko-Die has been in the Steininger family since its founding in 1947—and after 71 years in business, tax reform is allowing them to expand their facility, update their technology and reward their employees.
“The first thing I did when I found out what my tax savings would be? I took that money and gave a raise to all the employees,” said Sko-Die’s president, Patrick Steininger. “It came to about 3 percent per employee, on average.”
The total price for Steininger’s technology investment? “About $1 million.”
“Without tax reform, we wouldn’t have made these investments,” Steininger said. “Absolutely not.” - August 24, 2018, National Association of Manufacturers’ Shopfloor Blog excerpt
Nicor Gas (Naperville, Illinois) – the utility will pass on tax reform savings to customers:
Nicor Gas customers can expect their rates to go down about $1.73 a month, effective in early May, the company said.
The Illinois Commerce Commission has approved a reduction of Nicor Gas' distribution rates totaling $43.6 million. The reduction stems from the Tax Cuts and Jobs Act of 2017, which lowered Nicor Gas' annual tax expense, according to a statement.
“We are pleased to share that benefit with our customers," said Nicor Gas President Melvin D. Williams – May 3, 2018, Daily Herald article excerpt
Illinois American Water (Urbana, Illinois) – The utility will pass along tax cut savings to customers:
The Federal Tax Cuts and Jobs Act decreased the corporate tax rate from 35 percent to 21 percent. On April 19, 2018, the Illinois Commerce Commission approved an order for Illinois utilities to pass savings from the national tax reform on to customers.
Illinois American Water is returning about $10.8 million to customers over the next 11 months.
Illinois American Water customers will see a credit on their May 2018 bill continuing through March 2019. After this initial 11-month timeframe, the credit amount will be reconciled and adjusted appropriately. The new credit amount will be communicated at that time.
According to Illinois American Water President Bruce Hauk, the credit to bills is a benefit provided through the financial model of a regulated investor-owned utility. He said, "We are pleased to be able to share this savings with our customers. In addition to this savings, our team works hard every day to control operational and maintenance costs so we can invest in our critical infrastructure and minimize impact to customer bills."
Depending on service area, Illinois American Water water service customers will see a credit on their bill for between about $1.39 a month to $2.35 a month. Wastewater service customers will see a credit on their bill between about $1.20 a month to $3.90 a month. – May 7, 2018, Business Wire article excerpt
Commonwealth Edison (commonly known as ComEd) (Chicago, Illinois) – the utility will pass tax savings to customers:
The recent annual formula rate filing also included an advancement of $205 million from anticipated savings in 2019 as a result of the federal tax cut and jobs act.
“In this filing, we have proposed to the ICC that we advance into 2019 with savings that customers would realize through the lower tax rates. The formula ratemaking process allows for such timely distribution of savings. It also would help to extend the stable rate environment that we have had for some time since before the smart grid program came and launched,” said Gomez. – April 25, 2018 The Chicago Citizen press release excerpt
The Rabine Group (Schaumburg, Illinois) — Increased raises and bonuses, increased charitable donations, increased hiring, increased research and development spending, and company expansion:
Take my company, the Rabine Group, a group of nine small Illinois-based companies providing paving, roofing, property assessment technology, dump trucking and exterior facility maintenance and construction. Because of tax cuts, our companies are able to do additional things that will spark economic growth. These include raises and bonuses for our teammates, larger donations to nonprofits, more hiring and jobs, larger research and development (R&D) spending, and expansion.
We will be giving raises that are roughly 50% larger than the past eight years and also larger bonus incentives. Our donations to the nonprofit foundations we support will in many cases double in 2018, and we will be adding jobs across the board from entry-level to leadership.
The combination of small business and corporate tax cuts has created small business optimism like we haven’t seen in more than a decade. Small businesses like ours work for great companies like Exelon, Walmart, Home Depot, and Lowe’s. And when they are growing, we can count on more opportunity. — Feb. 21, 2018 USA Today op-ed excerpt
Anamet Electrical Inc. (Mattoon, Illinois) - Increasing employee wages and investing in new equipment:
In oral testimony June 20, 2018, to the House Energy and Commerce Subcommittee on Energy ANAMET Electrical President Sam McCammon echoed the NEMA survey results citing that ANAMET had made investments in its employees and equipment as a result of tax reform.
"After foregoing pay raises for consecutive years, we were finally able to give our employees a much-deserved wage increase," McCammon said. "Because of the increase in the Section 179 deduction limit from 100 percent of $500,000 to 100 percent of $1,000,000, and 50 percent above $1,000,000, ANAMET is planning to increase our capital expenditures in 2019 by more than 100 percent from normal investment levels, which will better position us among our competition." - June 20, 2018 National Electrical Manufacturers Association press release excerpt
Ulta Beauty, Inc. (Bolingbrook, Illinois) — Bonuses for hourly associates, totaling $12.3 million.
Dot Foods (Mount Sterling, Illinois) -- $500 bonuses for 4,800 employees:
A Mount Sterling company is joining the growing ranks of businesses sharing the benefits of a tax overhaul with its employees.
All of Dot Foods’ nearly 4,800 full-time workers will get a $500 bonus.
The food industry redistributor said the bonuses will go to employees at all 12 Dot locations in the United States and both Dot Foods Canada locations. The one-time bonus will be paid in mid-March to those who were employed with Dot and Dot Transportation at end of 2017.
“We’re really happy to be able to give this bonus to our employees,” Dot Foods CEO Joe Tracy said. “We surprised them by announcing the bonus during our National Business Meeting in St. Louis in late January. Our people are Dot’s greatest asset, and the tax reform bill offered a great opportunity to reinvest in our employees.”
The 2017 Tax Cuts and Jobs Act lowered the federal corporate tax rate from 35 percent to 21 percent when President Trump signed it onto law in December. The bill also changed the way companies operating internationally are taxed.
“The tax legislation is good news for Dot and many other companies,” Tracy said. “It’s going to put us in a better position to compete internationally and continue to invest in our business. We owe our continued growth and success to our employees. Their hard work every day makes it possible, so it was an easy decision to recognize their efforts with this bonus when the opportunity arose.” – Feb. 17, 2018 Jacksonville Journal Courier article excerpt
Five Senses Spa, Salon and Barbershop (Peoria, Illinois) -- $500 bonuses for 20 employees; the company is also looking into additional employee benefits in 2018.
Paola Hinton’s hands were shaking in December as she pulled out bundles of cash and gave each of her 20 employees a $500 bonus. No one in the crowded back room at Five Senses Spa, Salon and Barbershop in Peoria had ever seen $10,000 in cash, and Hinton had it all in a little briefcase.
The employees’ faces lit up, recalled Hinton, who launched the business almost 12 years ago. She has never been able to give bonuses like this before, but the new federal tax law passed late last year made it possible, she said.
--
Hair stylist Breitanya Williams spent part of her bonus fixing the taillights on her Buick Rendezvous — the only vehicle she and her husband own that will fit all four of their young children.
Another portion of Williams’ extra money went toward subscribing to a workout program. “That’s like my life-changing part,” said Williams, 25. “I just had my fourth child in five years … (and I’m) trying to make my family and myself healthier.”
Williams’ colleague Laura Naven also put her bonus toward her family. She paid down hospital bills left over from when she gave birth to her 4-month-old and put some money into savings.
“I have two kids, so building up the savings is key right now,” said Naven, 33, general manager at Five Senses. -- Jan. 26, 2018 Chicago Tribune article excerpts
Griffith Trucking, Broadway Express, Heartland Peterbilt, Heartland Classics (Effingham and Newton, Illinois) – $1,000 bonuses:
In President Trump’s State of the Union address Tuesday evening, he made the case that his recent tax law is the reason why companies across the country have announced bonuses, wage increases and other benefits for their employees.
Tony Griffith, who owns three companies in Effingham, agrees wholeheartedly. So much so that this week he announced to his 65 full-time employees that he will be giving each of them a $1,000 bonus.
--
Husband and wife Kristi and Rich Stoddard, who both work at Heartland Peterbilt, are also excited about the bonuses. With three children, they say it's a more than welcome gesture.
“Anytime your paycheck increases, it’s definitely a good thing for your family," said Kristi Stoddard. "It’s nice to see they’re putting money back into the middle class."
--
For the Stoddards and others, every bit counts.
"We’ll be able to pay more bills," said Rich Stoddard. "We might be able to go out for dinner. Do the little things we might not be able to do until this kicks in. Honestly, your paycheck, you know where it’s going even before you get it. Now we have a little extra." – Jan. 31 Effingham Daily News article excerpt
T.J. Maxx – 50 stores in Illinois – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:
The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:
Associates
-
A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
-
An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
-
Instituting paid parental leave for eligible Associates in the U.S.
-
Enhancing vacation benefits for certain U.S. Associates
Communities
Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt
Dohrn Transfer (Rock Island, Illinois) -- $1,000 bonuses for approximately 1,200 employees; increased capital expenditures:
At least one Quad-Cities company is already giving out bonuses due to the recent federal tax-cut savings.
Dohrn Transfer, with its corporate headquarters for trucking and a company warehouse in Rock Island, has mailed out $1,000 bonuses to all of its approximately 1,200 employees in six Midwest states. About 350 of those work here.
“It was from the tax plan,” Heather Dohrn, vice president of a sales and marketing, said Wednesday, referring to the tax cut signed into law Dec. 22 by President Donald Trump.
“It generated tax savings for our company, and we wanted to share it with our employees," she said. "Even our part-time employees (received the entire bonus).”
Employees began receiving the checks in the mail Monday.
“They were pretty excited,” Ms. Dohrn said. “One thousand dollars goes a long way with hard-working people. It’s exciting to hear what they are doing with it, and that they feel appreciated.
“It’s important for us to make sure we are compensating them and passing on those savings to them, because they are the ones that make us successful,” she added. “Our secret sauce is our employees, so we want to make sure that we are compensating them.”
Ms. Dohrn also said the tax reform was done to stimulate the economy, “so let's get it into the hands of the people that can use it and get it back in the economy and drive things in the right direction.”
The money in bonuses is in addition to the increases that the company will be doing for employees in 2018, she said.
“It’s not like this is a one-time thing,” Ms. Dohrn said. “We are going to continue to reinvest in our employees.”
Ms. Dohrn said additional money from the tax cut savings will be reinvested in equipment and infrastructure by the company to help it continue to grow in 2018. Ms. Dohrn said the company expects about a 10 percent growth this year.” – Jan. 31 2018, The Dispatch/The Rock Island Argus article excerpt
Flavorchem Corp. (Downers Grove, Illinois) -- Because of the Tax Cuts and Jobs Act, the company was able to make a $4 million investment in new equipment.
“During the visit, Flavorchem announced a previously-undisclosed $4 million investment in new equipment helped made possible due to the historic tax reform law enacted last year. Roskam was able to view the upgraded spray dryer and air pollution control device while touring the facility.
Rep. Roskam’s leadership on tax reform supported our long-term, community-focused strategic plan of making a $4 million expansion of our production and enabled us to keep our strong commitment to meeting the highest standards of quality, safety and supply chain contingency, said Ken Malinowski, President of Flavorchem Corporation.” -- July 2, 2018 NAM Shopfloor Blog
Emkay, Inc. (Itasca, Illinois) -- Emkay is a fleet management company that gave $1,000 bonuses to 150 employees:
“EMKAY, Inc. has announced that all full-time employees will receive a $1,000 bonus in response to the tax reform that was just signed by President Trump. EMKAY, a privately-owned fleet management company, wasted no time in taking action to pass the benefits of this reform on to their team.
“With a brighter future for EMKAY and more profitable growth, naturally we are hopeful that these tax changes will become permanent. And then, if so, we will be able to share even more of the tax cut benefits with you – our employees and most valuable asset,” EMKAY President Greg DePace said in a statement to EMKAY employees.” – Jan. 2018 Emkay Inc. statement
LincolnWay Community Bank (New Lenox, Illinois) – $1,500 bonus for 33 permanent employees:
“LincolnWay Community Bank today announced plans to award a one-time $1,500 bonus to most of its employees on February 6.
"We are pleased to be able to provide this additional reward to our employees for continuing to deliver outstanding service to our customers" said Mark Stevens, LincolnWay Community Bank President. "This investment in our employees was made possible by the new tax reform law."
LincolnWay Community Bank currently has 33 permanent employees, at three branches in New Lenox, Mokena and Chicago, who are eligible to receive the tax reform bonus.” -- Feb. 5, 2018 LincolnWay Community Bank announcement excerpt
Ameren Illinois (Chicago, Illinois) – Thanks to the tax cuts, utility customers will have lower bills:
Ameren Illinois electric customers could save an average of $2.50 to $3.00 per month in 2018 and natural gas customers could save an average of $1 per month if the Illinois Commerce Commission (ICC) approves the company's plan to pass savings from the recently approved federal tax cut legislation back to its customers. Customers using both electricity and natural gas could see a combined savings.
In the proposal filed with the ICC today, the company is seeking approval to pass along federal tax savings to electric customers beginning this year. A similar proposal was filed last week on behalf of Ameren Illinois natural gas customers.
"Under the new tax plan, Ameren Illinois’ effective tax rate will decrease by nearly 13%,” said Richard Mark, chairman and president, Ameren Illinois. "The plan we have filed with the ICC gives us the ability to expedite the return of these savings to our customers."
The Energy Infrastructure Modernization Act of 2011 provides a mechanism to return these savings to electric customers, but without filing the petition customers would have to wait until 2020 to receive the benefits. If approved by the ICC, Ameren Illinois customers will begin seeing these savings in March. – Jan. 22 2018, Ameren Illinois press release
AT&T -- $1,000 bonuses to 10,775 Illinois-based AT&T employees. Nationwide, the company also announced a $1 billion increase in capital expenditures:
Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release
Lowe's -- 5,000 employees at 38 stores and one distribution center in Illinois. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.
Home Depot -- 76 locations in Illinois, bonuses for all hourly employees, up to $1,000.
Wal-Mart – 162 locations in Illinois -- 34,600 Illinois-based Walmart and Sam's Club employees are receiving tax reform bonuses ranging from $200 - $1,000 for a state total of $13,720,800. More than 20,000 Illinois-based Walmart and Sam's Club employees are receiving wage increases, for a total of more than $32 million. The starting wage rate was raised for all hourly employees to $11. The company also announced expanded maternity and parental leave and $5,000 for adoption expenses.
U-Haul (Multiple locations in Illinois) – $1,200 bonuses for full-time employees, $500 for part-time employees.
Apple (Apple store locations in Lincoln Park, Michigan Ave, Deer Park, Main Place, Northbrook, Oakbrook, Orland Square Mall, Woodfield, Old Orchard) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.
CarMax (Locations in Bloomington, Champaign, and Chicago) – $250-$1,500 bonuses depending on length of service:
“The nation’s largest retailer of used cars, announced plans to provide one-time bonuses to most hourly and commissioned full-time and part-time associates as a result of the recently passed Tax Cuts and Jobs Act of 2017. Bonus amounts will vary from $200 up to $1,500 based on length of service with the company.” – Feb 23. 2018, EPR Retail News article excerpt
Cintas Corporation (Multiple locations in Illinois) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.
Comcast (Multiple locations in Illinois) -- $1,000 bonuses; nationally, at least $50 billion investment in infrastructure in next five years.
Chipotle Mexican Grill (Multiple locations in Illinois) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.
Ryder (21 locations in Illinois) -- Tax reform bonuses for employees.
Starbucks Coffee Company (Multiple locations in Illinois) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.
Wells Fargo – 19 bank locations in Illinois; raised base wage from $13.50 to $15.00 per hour; nationally, $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.
AbbVie, Inc. (North Chicago, Illinois) -- permanent salary increases for all non-executive employees; increased profit sharing for employees; one additional holiday for U.S. employees.
American Community Bank & Trust (Woodstock, Illinois) -- $500 bonus to each employee; additional employees will be hired.
MB Financial, Inc. (Chicago, Illinois) – base wage increased to $15 per hour; tax reform bonuses; and $7.5 million additional charitable contributions:
MB Financial, Inc., the holding company for MB Financial Bank, N.A. (“MB”), announced today that MB will raise the minimum wage paid to its employees, issue certain one-time bonuses, and donate $7.5 million to the disadvantaged communities in which it operates.
Mitch Feiger, President and CEO MB Financial, Inc., commented, “MB has long believed that our future is undeniably connected to our communities and employees. Because we hold this belief so closely it is only natural that we share the benefits of tax reform.”
As a result of the recently enacted Tax Cuts and Jobs Act of 2017 MB will contribute $7.5 million to the MB Charitable Foundation, specifically to help the most disadvantaged communities where MB operates for the creation of affordable housing, strong educational programs, vital community services, and to accelerate economic development. “Giving is a cornerstone of our culture,” said Rose Bouman, Executive Vice President of MB Financial Bank, “Our programs such as ‘MB on the Block’, wherein over 500 MB employees dedicate a day of service to the community each year, are at the heart of who we are.”
Also as a result of the new tax legislation, MB will raise its minimum wage to $15 per hour and pay certain one-time bonuses. It’s expected that nearly 75% of MB’s approximately 3,600 team members across the country will participate in these new compensation measures. “Our employees are truly different. Their passion sets them apart. It’s no wonder they go beyond every day for our clients, our communities, and each other. I’m thrilled we can pass along the benefits of tax reform to them,” commented Feiger. – Jan. 2 2018, MB Financial, Inc. press release
Turning Point USA (Lemont, Illinois) -- $300 bonuses to all 115 employees.
BancorpSouth Bank (insurance office is based in Itasca) – pay raises for over 70 percent of employees; $1,000 bonuses for nearly 20 percent of employees:
BancorpSouth Bank (NYSE: BXS) today announced an additional investment in its employees, which includes pay increases and /or one-time bonuses to nearly all non-commissioned employees.
The investment of over $10 million in 2018 will benefit 96% of the Company's non-commissioned workforce. Pay increases were effective January 1, 2018.
"We are proud to reward our team with this opportunity since the Tax Cuts and Jobs Act should benefit everyone" said Dan Rollins, Chairman and CEO. "BancorpSouth's continued and future success is based on the economic vitality of the communities we serve and taking care of our teammates allows us to provide the very best service to our customers, communities and shareholders." – Jan. 3, 2018 BancorpSouth Bank press release
-----------------------
The increased compensation overall at BancorpSouth affected more than 70 percent of all employees, and provided a $1,000 bonus to nearly 20 percent of all employees.
BancorpSouth employs some 4,000 employees in more than 230 locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, plus an insurance location in Illinois. – Jan. 4, 2018 Daily Journal/BizBuzz article
BMO Harris Bank (Chicago, Illinois) – base wage raised to $15 per hour; increased charitable donations:
“BMO Harris Bank has joined an increasing number of financial institutions in raising its minimum hourly wage to $15.
The bank cited the recent federal tax reform, which lowered the corporate income tax rate, in its decision to boost employee compensation.
The new rate is effective immediately, the company said Tuesday. BMO Harris, which is based in Chicago and owned by Toronto's BMO Financial Group, has more branches than any other bank in Wisconsin.
BMO Harris also said it will increase its level of philanthropic community giving by 10% in 2018.
“We’re pleased to share the benefits of the strong economic conditions, and the effects of the recent tax reform changes, with our employees and communities,” David Casper, president and chief executive of BMO Harris Bank, said in a statement. “Our success is tied directly to the communities we serve, and we’re proud of the exceptional job our employees do in providing a great customer experience.” – Jan. 31 2018, Milwaukee Journal Sentinel article excerpt
Boeing Company (Chicago, Illinois) -- $100 million for workforce development; $100 million for infrastructure and facilities; $100 million in charitable donations:
Boeing [NYSE: BA] Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.
"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country."
The simpler tax code and lower tax rate are closer to those enjoyed by Boeing's global competition and will have a clear and direct benefit to Boeing, its employees, and other stakeholders.
"For Boeing, the reforms enable us to better compete on the world stage and give us a stronger foundation for the investment in innovation, facilities and skills that will support our long-term growth," Muilenburg said.
While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:
- $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
- $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
- $100 million for "workplace of the future" facilities and infrastructure enhancements for Boeing employees.
"Each of these investments benefits Boeing's most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms," said Muilenburg. – Dec. 20, 2017 Boeing Company press release
Kraft Heinz Company (Chicago) – $1.3 billion pre-funding of post-retirement benefit plans; $800 million in capital expenditures; $300 million in strategic investments:
“Since the HR-1 Tax Cuts and Jobs Act was signed into law, we have already taken actions and are accelerating key business initiatives. This includes approximately $300 million in strategic investments to build our capabilities, our people skills and our brands; more than $800 million in capital expenditures to improve quality, safety and capacity; as well as $1.3 billion to pre-fund our post-retirement benefit plans. – Feb. 16 Kraft Heinz statement by David Knopf, CFO
First Midwest Bancorp, Inc. (Itasca, Illinois) – Base wage raised to $15 per hour; $1,035 bonuses for 85% of employees; $2 million in additional charitable contributions:
First Midwest Bancorp, Inc. (“First Midwest”) (NASDAQ:FMBI), the holding company of First Midwest Bank, announced today expanded investments in its colleagues and communities. These investments include the following:
- An increase in our minimum pay rate to $15 for hourly employees;
- A special bonus up to $1,035 to nearly 85% of our colleagues; and
- A $2 million contribution to the First Midwest Charitable Foundation.
“As we celebrate 35 years as First Midwest, our continuing investment in our colleagues, communities and business stands at the core of our success. I am therefore very pleased to take these important actions,” said Michael L. Scudder, Chairman and Chief Executive Officer of First Midwest. “The growth of our Company as well as the expected benefits from tax reform position us to reward our colleagues for their commitment and hard work as well as expand our investment in the communities in which we live and work.” -- Jan. 11, 2018 First Midwest Bancorp, inc. press release
Central Bancompany, Inc. (locations in O'Fallon, Millstadt, and Columbia) – Bonuses to 2,500 employees: $1,000 bonuses for full time employees; $500 bonuses for part time employees:
In December 2017, U.S. Congress passed a comprehensive tax reform package to encourage economic growth across the nation. As a result of the federal tax reform, Central Bancompany plans to distribute a special bonus to its more than 2,500 employees residing across four states – Missouri, Kansas, Illinois, and Oklahoma. Full-time employees will receive a $1,000 bonus and part-time employees will receive a $500 bonus.
“The economic development that should ensue as a direct result of the new tax reform legislation will positively affect the more than 66 communities we serve,” said Bryan Cook, Chairman and CEO of Central Bancompany, Inc. “We are excited for the opportunity to reward our dedicated and hard-working employees with this special bonus as a token of our gratitude for all that they do for our customers, businesses, and communities.” – Jan. 5, 2018 Central Bancompany press release
Wintrust Financial Corporation (Rosemont, Illinois) -- base wage raised to $15 per hour:
Town Bank is joining a growing list of Wisconsin and national banks in raising the minimum hourly wage for employees to $15.
Town Bank, a Hartland-based bank owned by Wintrust Financial Corp., of Rosemont, Ill., said Wednesday the decision to increase the pay rate for eligible staff "comes as a result of the recently enacted tax reform legislation and the bank’s continued commitment to its employees."
Wintrust said it expects that more than 600 employees will benefit from the pay raise across its family of more than 150 bank locations, including Town Bank's 19 branches in Wisconsin. -- Jan. 24 2018, Milwaukee Journal Sentinel article excerpt
Discover Financial Services (Riverwoods, Illinois) – Base wage raised to $15.25 per hour; $1,000 bonuses for more than 15,000 non-executive employees; additional investments and charitable donations to be announced:
Discover today announced plans to raise its minimum hourly pay rate to $15.25 for virtually all of its full-time U.S. employees as a result of the recent corporate tax reductions after granting a $1,000 bonus to more than 15,000 non-executive employees earlier this month.
The new minimum rate will take effect later this year and ultimately will impact more than 7,000 employees.
The company plans to make additional investments in its people and will increase corporate responsibility efforts in the communities in which it operates. – Jan. 24, 2018 Discover Financial Services press release
Bank of America (Multiple locations in Illinois) -- Illinois-based employees of Bank of America will receive $1,000 bonuses.
MainSource Financial Group (branch locations in Kankakee, Grant Park, Hoopeston, and Watseka) – Base wage raised to $15 per hour:
MainSource Financial Group (NASDAQ: MSFG) will raise the starting pay and minimum hourly rate to $15 an hour effective immediately for all of its non-exempt, non-commissioned employees. This announcement comes as a result of the recently passed tax legislation, which includes a reduction in corporate tax rates.
Approximately 1,000 associates are employed throughout the MainSource footprint in Ohio, Indiana, Illinois and Kentucky. The pay increase will affect over 200 employees.
Archie M. Brown, Jr., President and CEO, stated, "The recently passed tax legislation is anticipated to create significant savings for our company. We are pleased to direct a portion of this savings back to many of our employees with a meaningful increase in pay." – Jan. 3, 2018 MainSource Financial Group press release
Note: If you know of other Illinois examples, please email John Kartch at jkartch@atr.org
The running nationwide list of companies can be found at www.atr.org/list
More from Americans for Tax Reform
Free Speech & Citizen Privacy Under Attack, Even During Pandemic
Nancy Pelosi & House Democrats went after citizen privacy & free speech with their coronavirus bill, highlighting just how at-risk freedom of speech is. Many state governments also have attempted to silence citizen advocacy. Matt Nese from the Institute for Free Speech joins the podcast to discuss these issues, and how to proactively protect citizen privacy.
More from Americans for Tax Reform
List: 117 Regulations Waived to Help Fight COVID-19
The Trump administration and state and local governments are wisely suspending regulations in order to help the fight against the COVID-19 virus.
Many of these regulations were never needed in the first place, given their tendency to reduce innovation and access to care, not to mention their restriction on American liberty.
Below is a list of suspended rules and regulations. If you have another example to add, please send it to ideas@atr.org
Suspended federal rules and regulations:
FDA allows state leeway in virus testing
"The FDA will allow states to take responsibility for tests developed and used by laboratories within their borders. The labs will not have to pursue Emergency Use Authorization from the agency, an emergency clearance that is normally required." - STAT News (3/16/20)
FDA loosens regulations on distribution of newly developed tests
"Under certain circumstances, the agency will not object to any manufacturers that distribute newly developed tests before the FDA grants emergency clearance, and a similar stance will be taken toward labs that use these new tests." - STAT News (3/16/20)
"This deregulatory action will allow greater flexibility for truck drivers transporting goods such as necessary medical supplies, testing equipment, hand sanitizer, disinfectants and food required for emergency restocking of stores." - Americans for Tax Reform (3/16/20)
Not all test kits required to be sent to a CDC lab
"The administration removed a regulation that required all test kits to be sent to a CDC lab to be confirmed by federal authorities, a process that extended the wait times for patients to be notified about their results." - Washington Examiner (3/13/20)
The "requirements that physicians or other health care professionals hold licenses in the State in which they provide services, if they have an equivalent license from another State (and are not affirmatively barred from practice in that State or any State a part of which is included in the emergency area)" are being waived. - U.S. Department of Health and Human Services (3/13/20)
TSA allowing hand sanitizer containers up to 12 ounces
"TSA is allowing passengers to bring liquid hand sanitizer containers up to 12 ounces in carry-on bags until further notice. Passengers can expect that these containers larger than the standard allowance of 3.4 ounces of liquids permitted through a checkpoint will need to be screened separately..." - Transportation Security Administration (3/13/20)
Loosening HIPAA requirements in order to expand telemedicine
In order to allow patients to more easily communicate with their providers, the Administration loosened the HIPAA requirements surrounding telemedicine. This important change allows doctors to see patients via commonly used apps like FaceTime and Skype that were previously non-HIPAA compliant. - U.S. Department of Health and Human Services (3/17/20)
Allowing out-of-state doctors to treat patients through telehealth
"HHS Secretary Alex Azar waive certain laws to expand the use of telehealth, which public health experts say can help reduce risk of transmission. The new order appears to let Azar waive federal licensing requirements so out-of-state doctors can treat patients virtually in states with the greatest need." - Politico (3/13/20)
Easing restrictions on online courses at colleges and universities
The Department of Education has moved to ease rules on colleges and universities who are shifting their classes online. There are a collection of rules being eased, not enforced. - Office of Postsecondary Education (3/5/20)
Allowing distilled spirits permittees (DSPs) to produce hand sanitizer
"Due to the Coronavirus 2019 (COVID-19) pandemic, the Acting Administrator of the Alcohol and Tobacco Tax and Trade Bureau (TTB) has found that it is necessary or desirable to waive provisions of internal revenue law with regard to distilled spirits, and therefore is providing certain exemptions and authorizations to distilled spirits permittees who wish to produce ethanol-based hand sanitizers to address the demand for such products during this emergency." - Alcohol and Tobacco Tax and Trade Bureau (3/18/20)
"Faster, Easier Qualification Process for States Seeking SBA Disaster Assistance. Historically, the SBA has required that any state or territory impacted by disaster provide documentation certifying that at least five small businesses have suffered substantial economic injury as a result of a disaster, with at least one business located in each declared county/parish. Under the just-released, revised criteria, states or territories are only required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where those businesses are located." - Small Business Administration (3/17/20)
Tax deadline extended until July by the IRS
The Trump Administration has extended the tax deadline to allow more flexibility in filing during this chaotic time. Americans for Tax Reform still recommends that taxpayers file their returns as soon as possible. Most taxpayers get refunds, in total amounting to about $50B in refunds that could be injected into the economy now. Taxpayers should be encouraged to file their returns as soon as possible to get refunds NOW to help them recover.
"Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due." - Internal Revenue Service (3/18/20)
FDA eases rules to increase ventilator production
"First, the guidance describes the agency’s intention to exercise enforcement discretion for certain modifications to these FDA-cleared devices. Normally, any time a manufacturer or user makes a modification to a ventilator device, for instance, adding wireless and/or Bluetooth capability for remote monitoring, those modifications can often trigger an FDA premarket review, which can delay the time it takes to get these devices to the bedside. The guidance also helps manufacturers ramp up their manufacturing by adding production lines or alternative sites, for instance, using non-medical device manufacturers such as automobile manufacturers, to start manufacturing ventilator parts....Second, as outlined in this guidance, hospitals and health care professionals may use ventilators intended for other environments... Finally, the agency encourages manufacturers, whether foreign or domestic, to talk to FDA about pursuing an emergency use authorization (EUA), which would allow them to distribute their ventilators in the United States." - U.S. Food and Drug Administration (3/22/20)
"Federal Emergency Management Agency (FEMA) gave Puerto Rico and other territories the discretion to acquire personal protective equipment from non-U.S. sources… Previously, U.S. territories and the District of Columbia were obliged to purchase only U.S.-made personal protective equipment in accordance with the Buy American Act." - Reason (3/24/20)
"The 60-day grant of special temporary authority (STA) for use of the lower 45 MHz of the band is to help them serve rural communities during the COVID-19 pandemic. The FCC said the grants will help with telehealth, distance learning and telework in rural communities in Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Virginia, Vermont, Washington, Wisconsin, and West Virginia." - Multichannel News (3/27/20)
Suspended state rules and regulations:
Alabama - Allowance for the curbside sale of alcoholic beverages
"Officials in Alabama have signed an emergency order to allow for the sale of alcoholic beverages curbside at licensed businesses in the state." - WBRC (3/17/20)
Alabama - Allows for prescriptions to be filled for longer than 30 days
"Due to the ongoing threat of coronavirus, the Alabama Board of Pharmacy is allowing pharmacists to process emergency refills on essential medications." - WHNT (3/16/20)
Arizona - Expanding scope of practice for Certified Registered Nurse Anesthetists
"Governor Ducey notified the Center For Medicare and Medicaid Services (CMS) of his decision to exempt the State of Arizona from a federal regulation requiring Certified Registered Nurse Anesthetists (CRNAs) to be supervised by a physician. The reform will expand access to care, especially in rural areas, and free up physicians for other needed medical services." - Office of Governor Doug Ducey (3/24/20)
"Under the Executive Order, state agencies and boards will defer requirements to renew licenses that have an expiration date between March 1, 2020 and September 1, 2020 by six months from the expiration date, unless those requirements can be completed online. Additionally, they will defer requirements to complete continuing education by six months, unless those requirements can be completed online." - Office of Governor Doug Ducey (3/26/20)
"To fully leverage telehealth in Arkansas and mitigate the spread of COVID-19, I am suspending the provisions… requiring an in-person encounter, or a face to face examination using real time audio and visual means to establish a professional relationship. Physicians licensed in Arkansas who have access to a patient's personal health record maintained by a physician may establish a professional relationship with a patient using any technology deemed appopriate by the provider... with a citizen located in Arkansas to diagnose, treat and if clinically appropriate, prescribe a non-controlled drug to that patient." - Office of Governor Asa Hutchinson (3/24/20)
Colorado - Expedited medical licensing
"Governor Polis said he would order the state to expedite licensing of new medical professionals and asked medical professionals who might be retired or are in a different profession to reconnect with their prior employer to supplement the state’s health cares systems if and when medical professionals are diagnosed with COVID-19." - CPR News (3/13/20)
Colorado - Interstate reciprocity for health care licenses
"In order to scale up our health care workforce capacity, I have asked the Colorado Department of Regulatory Agencies to cut through the red tape on licensing our medical professionals so that medical professionals - including pharmacists, nurses, doctors - who are licensed in other states but residing here can be immediately licensed in Colorado as quickly as possible to address this shortage." - Office of Governor Jared Polis (3/13/20)
Colorado - Deregulatory efforts for drivers' licensing and vehicle registration
Governor Polis closed the state’s DMVs, waived the restriction on online renewals for residents 65 and older, and permitted counties to waive late fees and renewals for vehicle registration. - Office of Governor Jared Polis (3/2020)
Connecticut - Office of Health Strategy to waive Certificates of Need
"Authorizes the Office of Health Strategy to waive Certificates of Need and other requirements to ensure adequate availability of healthcare resources and facilities." - Office of Governor Ned Lamont (3/14/20)
Connecticut - Waives certain easily childhood care licensing requirements
"Governor Lamont signed his third executive order since the enactment of the emergency declarations earlier this week. The order issued... authorizes the Commissioner of Early Childhood to waive certain licensing and other requirements to maintain and increase the availability of childcare…" - Office of Governor Ned Lamont (3/14/20)
Connecticut - Easing regulations on pharmacist procedure
"Governor Lamont today signed his third executive order since the enactment of the emergency declarations earlier this week. The order issued... waives requirements for pharmacists to use certain personal protective equipment when working with non-hazardous, sterile compounds." - Office of Governor Ned Lamont (3/14/20)
Connecticut - Allows pharmacists to make and sell hand sanitizer
"Governor Lamont today signed his third executive order since the enactment of the emergency declarations earlier this week. The order issued… allows pharmacists to compound and sell hand sanitizer." - Office of Governor Ned Lamont (3/14/20)
Connecticut - Established interstate reciprocity for health care licenses
"Permits physicians, nurses, respiratory care practitioners, emergency medical services personnel, and other health care practitioners who are licensed in another state to provide temporary assistance in Connecticut for a period of 60 days." - Connecticut’s Commissioner of the Department of Public Health (3/23/20)
Connecticut - Suspension of Tax on Single-Use Checkout Bags
"Temporary Suspension of Tax on Single-Use Checkout Bags. All provisions of Section 355 of Public Act 19-117, as codified in Section 22a246a of the 2020 Supplement to the Connecticut General Statutes, regarding single-use plastic checkout bags, are temporarily suspended through May 15, 2020, unless earlier modified, extended, or terminated by me. The Commisioner of Revenue Services shall issue any implementing order he deems necessmy, and any guidance for businesses on accounting or other necessmy measures during this temporary suspension." - Office of Governor Ned Lamont (3/26/20)
Florida - Customer service representatives allowed to work remotely
Florida Chief Financial Officer Jimmy Patronis issued a directive allowing Florida agency customer service representatives, who would normally be restricted from conducting business outside of a licensed agency, to work remotely. - Florida Department of Financial Services (3/17/20)
Florida - Interstate reciprocity for health care licenses
"For purposes of preparing for, responding to, and mitigating any effect of COVID-19, health care professionals, advanced life support professionals, and basic life support professionals holding a valid, unrestricted, and unencumbered license in any state, territory, and/or district may render such services in Florida during a period not to exceed thirty days unless extended by order of the State Surgeon General, if such health care practitioner does not represent or hold themselves out as a health care practitioner licensed to practice in Florida." - State Surgeon General Scott A. Rivkees, Executive Order (3/16/20)
Florida - Out-of-state health care professionals may use telehealth to care for patients in Florida
"For purposes of preparing for, responding to, and mitigating any effect of COVID-19, health care professionals not licensed in this state may provide health care services to a patient licensed in this state using telehealth…" - State Surgeon General Scott A. Rivkees, Executive Order (3/16/20)
Florida - Emergency medical services training programs may use remote instruction and simulations
"For purposes of preparing for, responding to, and mitigating any effect of COVID-19, emergency medical services training programs may, with the approval ofthe training program medical director, substitute supervised remote live videoconferencing or simulation for one-half of the supervised clinical instruction hours and one-half of the supervised field internship hours required by section 401.2701, Florida Statutes, and applicable rules." - State Surgeon General Scott A Rivkees, Executive Order (3/16/20)
"For purposes of preparing for, responding to, and mitigating any effect of COVID-19, qualified physicians under section 381.986, Florida Statutes [medical use of marijuana], may issue a physician certification only for an existing qualified patient with an existing certification that was issued by that qualified physician without the need to conduct a physical examination while physically present in the same room as the patient." - State Surgeon General Scott A Rivkees, Executive Order (3/16/20)
"For purposes of preparing for, responding to, and mitigating any effect of COVID-19, physicians, osteopathic physicians, physician assistants, and advanced practice registered nurses licensed in Florida that have designated themselves as a controlled substance prescribing practitioner pursuant to section 456.44, may issue a renewal prescription for a controlled substance listed as Schedule II, Schedule III, or Schedule IV under chapter 893 only for an existing patient for the purpose of treating chronic nonmalignant pain without the need to conduct a physical examination of the patient. These practitioners may only substitute telehealth services for the physical examination." - State Surgeon General Scott A Rivkees, Executive Order (3/16/20)
"For the purposes of preparing for, responding to, and mitigating any effect of COVID-19, the provisions of chapters 499 and 465, Florida Statutes, and rules promulgated thereunder, that if applied, would operate to limit distribution, dispensing, or administration of otherwise legitimate prescription drugs in a manner that could hinder, prevent, or delay mitigation of any health-related condition are suspended for a period of thirty days, unless extended."- State Surgeon General Scott A Rivkees, Executive Order (3/16/20)
Georgia - Allowing charity to provide food to students in need
"Despite the selfless services that MUST Ministries provides, last year, government regulators stepped in and informed the charity that they can longer run the summer lunch program in the manner that they were accustomed.... Thanks to coronavirus, schools are temporarily closed across Georgia to contain COVID-19’s spread. The negative byproduct of this is that many underserved children, who would otherwise receive school lunches, now risk going hungry. To the government’s credit, schools are planning to somehow provide kids these lunches. According to 11Alive News, “To continue to support Cobb students while schools are closed, the Cobb County School District is partnering with MUST Ministries to provide food to students in need.”" - All On Georgia (3/19/20)
"I temporarily suspend the regulatory provisions... to the extent that they require a minimum number of hours of field experience if the higher education institution providing practitioner preparation program determines that the student has completed sufficient field experience to determine that the student should be recommended for licensure." - Office of Governor Kim Reynolds (3/17/20)
"I temporarily suspend the regulatory provisions... implementing administrative rules which prohibit the practice of medicine and surgery, osteopathic medicine and surgery, nursing, respiratory care, and practice as a physician assistant, by a licensee whose license is inactive or lapsed. Suspension of these provisions is limited to licenses which have lapsed or expired within the five (5) years prior to this Proclamation..." - Office of Governor Kim Reynolds (3/17/20)
Louisiana - Expansion of access to Telehealth Services
"The requirement… that each state agency or professional or occupational licensing board or commission that regulates the practice of a healthcare provider promulgate any rules necessary to provide for, promote, or regulate the use of telehealth in the delivery of healthcare services within the scope of proactive regulated by the licensing entity is hereby suspended during the term of this emergency declaration." - Office of Governor John Bel Edwards (3/19/20)
Louisiana - Loosened regulations on ambulance staffing requirements
"The ambulance staffing requirements set forth in R.S. 40:1135.1 (A)(2)(a) are hereby temporarily suspended as to ambulance drivers, provided that such driver possesses a driver's license valid in the State of Louisiana and meets the criminals background check requirements…" - Office of Governor John Bel Edwards (3/19/20)
Louisiana - Loosened staffing requirements for lab personnel
"The licensing and certification requirements for Louisiana Clinical Laboratory Personnel set forth… including any requirements for criminal background checks be temporarily suspended for those laboratory personnel conducting COVID-19 testing who demonstrate molecular biology polymerase chain reaction (PCR) experience and/or for those who demonstrate serological experience in testing clinical samples... " - Office of Governor John Bel Edwards (3/19/20)
"All Public Post-secondary institutions and proprietary schools within the state of Louisiana that are licensed by the Louisiana Board of Regents shall be allowed to substitute in-person clinical and classroom instruction with online and lab simulations for enrolled students..." - Office of Governor John Bel Edwards (3/19/20)
Louisiana - Temporary permits for medical professionals
"The added language in sections 3329 and 4513 will address the public health emergency crisis that is taking place in Louisiana. In Chapter 33, section 3329 the board may extend the expiration of temporary permits for new graduates who have been unable to take the NCLEX-RN licensure exam or reinstate an expired permit during a public health emergency." - Louisiana Department of Health, Board of Nursing (3/2020)
Louisiana - Delayed tax collection and deadline
The order extends the sales tax returns and excise tax returns deadline to May 20, 2020.
"The purpose of this guidance is to provide filing and payment extension relief for certain taxes due on March 20, 2020." - Louisiana Department of Revenue (3/19/20)
Maine - Plastic bag ban suspended
Emergency legislation pushes back the effective date of the statewide plastic bag ban from April 22 to Jan. 15, 2021. - Maine Legislature (3/18/20)
Maine - Easing restrictions on physician assistants' ability to provide care
LD 1660 expanded the ability of physician assistants to provide health care, reducing the regulatory burden on health care providers, adjusting licensing rules, and making it easier to hire physician assistants. - Maine Legislature (3/17/20)
Maryland - Established interstate reciprocity for health care licenses
"Prior to this new rule, state regulation was such that only people with health care licenses issued by the state could practice in Maryland." - Office of Governor Larry Hogan (3/16/20)
Maryland - Inactive practitioners allowed to practice
"Any inactive practitioner may, at a health care facility in Maryland, engage in activities that would have been authorized under his/her inactive license without first reinstating his/her inactive license." - Office of Governor Larry Hogan (3/16/20)
Maryland - Removing limits on purchases of alcohol
"Maryland has removed limits on purchases of craft beer and distilled spirits purchased at tap and tasting rooms for the duration of the governor’s state of emergency, Comptroller Peter Franchot announced Wednesday." - Washington Post (3/18/20)
Massachusetts - Allowance of some pharmacies to make hand sanitizer
Governor Baker has allowed certain licensed pharmacists to make hand sanitizer to address state shortages. - Biz Journals (3/12/20)
Massachusetts - Licensed medical workers able to get Mass. licenses in one day
Gov. Baker is now allowing licensed medical workers from other states to get a Massachusetts license in one day. - New England Public Radio (3/15/20)
Massachusetts - Allowance of expanded telemedicine
"In an urgent response to the coronavirus threat, the state medical board voted to let doctors treat more patients online, made it easier for them to practice at multiple hospitals, and vowed to speed up the licensing of medical school graduates." - Boston Globe (3/16/20)
Massachusetts - Doctors given more ability to treat patients
"The new rule approved by the board makes it explicit that a doctor can treat a patient whom he or she has never seen in person as long as the physician considers it best for the patient during the health crisis." - Boston Globe (3/16/20)
Massachusetts - Local bans on plastic bags lifted
"Massachusetts Gov. Charlie Baker has… lifted local bans on plastic bags at grocery stores and pharmacies as part of his administration's latest steps to limit the spread of the coronavirus." - Boston Business Journal (3/25/20)
Michigan - DHHS loosens certificate of need requirements
"Effective immediately and continuing through April 14, 2020 at 11:59 pm, the Department of Health and Human Services (“DHHS”) may issue an emergency certificate of need to an applicant and defer strict compliance with the procedural requirements of section 22235 of the Public Health Code, 1978 PA 368, as amended, MCL 333.22235, until the termination of the state of emergency under section 3 of Executive Order 2020-4." - Office of Governor Gretchen Whitmer (3/18/20)
"Effective immediately and continuing through April 14, 2020 at 11:59 pm, the Department of Licensing and Regulatory Affairs (“LARA”) may grant a waiver under section 21564 of the Public Health Code, 1978 PA 368, as amended, MCL 333.21564, to any licensed hospital in this state, regardless of number of beds or location, for the purpose of providing care during the COVID-19 emergency, to construct, acquire, or operate a temporary or mobile facility for any health care purpose, regardless of where the facility is located." - Office of Governor Gretchen Whitmer (3/18/20)
Michigan - Non-nursing assistants allowed to give a broader scope of care
"Effective immediately and continuing through April 14, 2020 at 11:59 pm, Department of Licensing and Regulatory Affairs may allow a non-nursing assistant such as an activity coordinator, social worker, or volunteer to help feed or transport a patient or resident in a manner consistent with the patient’s or resident’s care plan." - Office of Governor Gretchen Whitmer (3/18/20)
"Effective immediately and continuing through April 14, 2020 at 11:59 pm, Department of Licensing and Regulatory Affairs (LARA) may issue a temporary registration as a certified nurse aide to an applicant, regardless of whether the applicant demonstrates to LARA that they have successfully completed the examination requirements of sections 21911 and 21913 of the Public Health Code, 1978 PA 368, as amended, MCL 333.21911 and MCL 333.21913." - Office of Governor Gretchen Whitmer (3/18/20)
"Strict compliance with subsection (3) of section 78g of the General Property Tax Act (“GPTA”), 1893 PA 206, as amended, MCL 211.78g(3), is temporarily suspended. As a result, the deadline by which property forfeited to a county treasurer must be redeemed is extended from March 31, 2020 until the later of (a) May 29, 2020, or (b) 30 days after the termination of the state of emergency under section 3 of Executive Order 2020-4." - Office of Governor Gretchen Whitmer (3/2020)
"The state is allowing phone calls to count as a visit with the doctor so that those prescriptions can be refilled without an actual person to person visit." - WDAM (3/16/20)
"The licensure board is allowing out of state physicians to practice telemedicine without being licensed here, as long as they contact the board for authorization, are licensed and in good standing where they practice." - WDAM (3/16/20)
Nebraska - Extending the tax deadline
"The State of Nebraska is providing this same income tax relief to state income taxpayers. The tax filing deadline will automatically be extended to July 15, 2020 for state income tax payments and estimated payments that were originally due on April 15, 2020. Nebraskans who are able to pay earlier are encouraged to do so to help the State manage its cash flow." - Office of Governor Pete Ricketts (3/23/20)
Nebraska - Allowing takeout for mixed drinks with lids
“Our restaurants and bars have been some of the hardest hit businesses during the COVID-19 pandemic,” said Gov. Ricketts. “I've signed an executive order to help them by allowing takeout for pre-made cocktails and other alcoholic beverages as long as they are sealed with a lid.” - Office of Governor Pete Ricketts (3/26/20)
Nebraska - Expanding access to childcare options
"The order is intended to activate nonprofits, faith-based organizations, and schools to help provide the care families need now. It eases the licensing requirements to open and operate a temporary, non-residential child care in an alternative setting. The executive order is effective immediately and will remain in place until 30 days after the State lifts the current COVID-19 state of emergency." - Office of Governor Pete Ricketts
New Hampshire - Allowing for take-out or delivery beer or wine
"Temporary authorization for take-out or delivery beer or wine. All restaurants, diners, bars, saloons, private clubs or any other establishment that have both a restaurant license and on premise license from the New Hampshire liquor commission shall be temporarily authorized to allow for takeout or delivery of beer or wine." - Office of Governor Sununu (3/18/20)
New Hampshire - Expansion of access to Telehealth Services
"All medical providers shall be allowed to perform health care services through the use of all modes of teleheatlh, including video and audio, audio-only, or other electronic media, to treat the residents of the state of NH for all medically necessary services." - Office of Governor Sununu (3/18/20)
New York - Restaurants and bars allowed to sell all forms of alcohol to-go
Governor Andrew Cuomo announced that as part of the new state-mandated take-out and delivery-only rule, restaurants and bars would also be allowed to sell all forms of alcohol to-go. - New York State Liquor Authority (3/17/20)
New York - Plastic bag ban suspended
"New York won’t enforce it’s recently enacted plastic bag ban for another two months, the state announced this week... pushing back the enforcement date from April 1 to May 15. While the ban went into effect at the beginning of March, the enforcement was delayed due to a suit brought on by New York businesses who argue they had little time to prepare. The suit is essentially on hold as the courts prioritize cases amid the coronavirus crisis and critics claim the ban is a health risk. Industry groups called the move a blessing for retailers as well as customers who are worried about using reusable bags at a time when contamination is a key concern." - NY Daily News (3/19/20)
New York - Suspension of Certificate on Need Laws for hospitals
Hospitals no longer need to seek the state’s approval before making changes to their "physical plants," like temporarily increasing their bed capacities. - Office of Governor Andrew Cuomo (3/19/20)
New York - Suspending laws mandating which cleaning products schools and the state may purchase
Laws that mandate that the only cleaning products that schools and the state can purchase are those that “minimize adverse impacts on children’s health and the environment” was suspended. Similarly, the procurement guidelines on buying these products have been relaxed. - Office of Governor Andrew Cuomo (3/19/20)
New York - Criminal background checks for child care providers suspended
A law mandating that child care providers undergo criminal background checks has been suspended. - Office of Governor Andrew Cuomo (3/19/20)
New York - Easing regulations on day care facilities
"Twenty-one other sections of Social Services regulations and a couple of sections of Social Services law dealing with day care have been put on ice. These suspensions will end capacity limits for day care facilities, let children of any age attend them and eliminate mandatory staffing minimums." - Politico (3/19/20)
"Every state or local law dealing with construction, energy conservation, or building codes can be suspended by the Commissioner of Health when creating new hospitals or extensions to existing ones." - Politico (3/19/20)
New York - Expansion of COVID-19 testing abilities
"The Commissioner of Health will be able to establish a new training program that will let individuals who are not currently registered as nurses engage in tasks that one currently needs to be licensed for. They’ll be able to “collect throat or nasopharyngeal swab specimens” from potentially infected individuals and will generally be able to perform all other tasks “otherwise limited to the scope of practice of a licensed or registered nurse” as long as they’re being supervised by a nurse... People who are not licensed in the state as clinical laboratory technicians, but do “meet the federal requirements for high complexity testing,” will be allowed to preform Covid-19 tests. Doctors and nurse practitioners will be able to give nurses blanket authority to perform Covid-19 tests without supervision." - Politico (3/19/20)
New York - Allows individuals with disabilities to be accompanied by staff of the opposite sex
"Individuals with disabilities will no longer need to be “accompanied by same gender staff” while being transported from state facilities. This will “permit providers to utilize staff members in the most effective means possible.”" - Politico (3/19/20)
New York - Established interstate reciprocity for health care licenses
"Physicians who are licensed anywhere in the country are now able to practice in New York without getting a state license. The same goes for other health care licensees. " - Office of Governor Andrew Cuomo (3/19/20)
New York - Expansion of access to Telehealth Services
"Every state law and rule dealing with telemedicine is suspended to make it easier for remote visits to occur." - Office of Governor Andrew Cuomo (3/19/20)
The approval process needed for giving a patient a drug that’s not on the state’s preferred list is suspended “to the extent necessary to allow patients to receive prescribed drugs, without delay.” Also, a law that requires managed care providers to consult with prescribers before deciding whether to cover some drugs was suspended. - Office of Governor Andrew Cuomo (3/19/20)
New York - Loosened limits on what kind of vehicles can be driven in the state
Some limits on what kinds of vehicles can be on New York roads have been suspended, to let those “validly registered in other jurisdictions” participate in response efforts. - Office of Governor Andrew Cuomo (3/19/20)
North Carolina - Lifted "Certificate of Need" law regarding hospital beds
"North Carolina temporarily lifted a regulation requiring hospitals to get state permission to add beds. The rule said hospitals couldn’t add more than 10% of their licensed bed capacity without state approval... Applying for a CON can cost as much as $500,000, and the state board which grants CONs doesn’t meet for months." - The Tribune Papers (3/15/20)
North Dakota - Identifying regulatory burden in state agencies
Burgum ordered state agencies to identify "any state laws, rules or regulations that hinder or delay their ability to render maximum assistance or continue to deliver essential services to citizens during the COVID-19 crisis. State elected officials and other executive branch offices were invited to do the same." - Office of Governor Doug Burgum (3/20/20)
North Dakota - Expansion of access to Telehealth Services
Burgum suspended several regulatory and statutory requirements in order to "allow for expanded telehealth services in North Dakota as residents practice social distancing and medical facilities try to limit in-person visits to slow the spread of COVID-19." - Office of Governor Doug Burgum (3/20/20)
North Dakota - Recognition of expired licenses and registrations
"The... executive order requires law enforcement agencies and private sector businesses to recognize any North Dakota driver’s license or motor vehicle registration that expired on or after March 1, 2020, as valid and current as long as the executive order is in effect." - Office of Governor Doug Burgum (3/20/20)
North Dakota - Loosening regulatory requirements for hospital and health care facilities
"The licensing requirements for hospitals and other health care facilities… and all related provisions under the North Dakota Administrative Code are hereby suspended…"- Office of Governor Doug Burgum (3/20/20)
"The preexisting patient relationship requirement for telemedicine…is hereby waived so long as this Order is in effect." - Office of Governor J. Kevin Stitt (3/17/20)
Oklahoma - Interstate reciprocity for health care licenses
"Any medical professional who holds a license, certificate, or other permit issued by any state that is a party to the Emergency Management Compact evidencing the meeting of qualifications for the practice of certain medical services… shall be deemed licensed to practice in Oklahoma... " - Office of Governor J. Kevin Stitt (3/17/20)
Oklahoma - Regulatory relief for commercial motor vehicles providing assistance for relief
"This Emergency Declaration provides regulatory relief for commercial motor vehicle operations that are providing direct assistance in support of emergency relief efforts related to the COVID-19 outbreaks…" - Office of Governor J. Kevin Stitt (3/17/20)
Oregon - Renewal of medical licenses
"Nik Blosser, Gov. Brown's chief of staff, said the state would immediately take steps to expand the health care workforce, by automatically renewing the license of any medical professional whose license had recently expired, for instance." - KGW8, NBC (3/16/20)
"Health care professionals licensed under any of the Department of State’s Bureau of Professional and Occupational Affairs (BPOA) licensing boards can provide services to patients via telemedicine during the coronavirus emergency." - Pennsylvania Department of State (3/18/20)
"Governor Wolf granted the Department of State’s request for a suspension to allow expedited temporary licensure to practitioners in other states to provide services to Pennsylvanians, for the duration of the coronavirus emergency." - Pennsylvania Department of State (3/18/20)
Pennsylvania - Certain regulations suspended for Nurse-Midwives
"Governor Wolf granted the Department of State’s request to allow the suspension of certain regulations concerning Certified Nurse Midwives. The Department of State’s Bureau of Professional and Occupational Affairs identified several regulations that could limit or delay the number of available practitioners to provide much-needed assistance." - Pennsylvania Department of State (3/20/20)
"In order to increase the number of practitioners available to respond to COVID-19, Governor Wolf granted the Department of State’s request to suspend the limitations on the number of institutions with which a medical doctor can be affiliated and the requirement to report those affiliations to the Board of Medicine for the duration of the disaster declaration. The Governor has suspended the institutional-license requirement that limits qualified medical doctors to practicing at no more than two (2) affiliated facilities." - Pennsylvania Department of State (3/20/20)
Pennsylvania - In-Person Requirement Suspended for Court Reporters
"Governor Wolf granted the Department of State’s request to suspend the requirement for physical presence of notaries who are court reporters/stenographers participating in criminal, civil and administrative proceedings in this Commonwealth." - Pennsylvania Department of State (3/21/20)
Pennsylvania - Waives Some Nurse Licensing Requirements to Aid Coronavirus Response
"The Department of State has waived certain administrative requirements for nurses, including temporarily extending license expiration dates and waiving associated fees during the coronavirus emergency." - Pennsylvania Department of State (3/21/20)
Pennsylvania - Some Continuing-Education Restrictions Suspended for Licensed Professionals
"Governor Wolf granted the Department of State’s request to suspend restrictions on distance-learning for continuing-education requirements for certain licensed professionals." - Pennsylvania Department of State (3/22/20)
"In order to increase the number of health-care practitioners available to respond to the COVID-19 emergency, Governor Wolf has granted the Department of State’s request to suspend some licensing requirements related to psychology; social work, marriage and family therapy and professional counselors." - Pennsylvania Department of State (3/22/20)
"In order to allow physician assistants practicing under the state Board of Osteopathic Medicine to more easily and effectively assist with emergency response efforts to COVID-19, Governor Wolf granted the Department of State’s request to suspend requirements pertaining to written agreements and several other items." - Pennsylvania Department of State (3/22/20)
Pennsylvania - Pennsylvania Expands Access to Pharmacy Services
"The Wolf administration is removing barriers for pharmacies to provide services for Pennsylvanians in response to the COVID-19 outbreak. Governor Wolf has granted a request from the Pennsylvania Department of State to suspend certain pharmacy regulations to enable more flexible and available services during the coronavirus emergency." - Pennsylvania Department of State (3/22/20)
Pennsylvania - Pennsylvania to Allow Retired Health Care Professionals to Bolster COVID-19 Response
"In order to increase the number of health care practitioners available to respond to the COVID-19 emergency and to ensure continuity of patient care and services, Governor Wolf has granted the Department of State’s request to suspend some licensing and regulatory requirements that will allow individuals in the healthcare field who have inactive licenses or have allowed their Pennsylvania license to expire, to seek reactivation and immediately resume work within their scope of practice, provided their inactive or expired license is/was in good standing." - Pennsylvania Department of State (3/25/20)
South Carolina - Issuing of “emergency” nursing and medical licenses to combat COVID-19
"The state medical board can expedite temporary licensure for out-of-state physicians, physician assistants and respiratory care practitioners within 24 hours... There will be no fee." - Office of Governor Henry McMaster (3/14/20)
Tennessee - Established interstate reciprocity for health care professionals
Gov. Bill Lee lifted licensing requirements for health care professionals to allow them to provide "localized treatment of patients in temporary residences." He is now allowing health care professionals who are licensed in another state to engage in the practice of their profession in Tennessee. - Executive Order by Governor Bill Lee (3/12/20)
Tennessee - Waiving child care licensure requirements
"Related rules are hereby suspended to the extent necessary to give the Commissioner of Human Services the discretion to waive the child care licensure requirements, including requirements concerning capacity, care categories, grouping, license transfers, and drop-in centers, if necessary to respond to the effects of COVID-19." - Executive Order by Governor Bill Lee (3/12/20)
Tennessee - Suspends many requirements of transporting medical supplies
"The provisions... that set forth maximum height, length, and width limitations are hereby suspended in the case of vehicles participating in the response to COVID-19, subject to the following conditions: a vehicle must be transporting emergency supplies, equipment, or mobile structures to affected areas." - Executive Order by Governor Bill Lee (3/12/20)
"The provisions of Tenn. Comp. R. & Regs. 1200-06-03-.16 are suspended to allow testing for COVID-19 at alternate testing sites without prior approval by the Medical Laboratory Board; provided, that laboratories shall notify the Medical Laboratory Board of any such alternate testing sites." - Executive Order by Governor Bill Lee (3/12/20)
Texas - Alcohol and groceries allowed in the same delivery truck
"Governor Greg Abbott lifted the restriction that forbid trucks from delivering both alcohol and groceries in the same truck." - KXXV (3/15/20)
Texas - Allowing the delivery of alcohol
Under this waiver, restaurants with a mixed beverage permit will immediately be able to sell beer, wine, or mixed drinks for delivery "as long as they are accompanied by food purchased from the restaurant." - Office of Governor Greg Abbott (3/18/20)
"Governor Greg Abbott directed the Texas Medical Board (TMB) and the Texas Board of Nursing (TBN) to fast-track the temporary licensing of out-of-state physicians, physician assistants, certain retired physicians, nurses, and other license types to assist in Texas' response to COVID-19." - Office of Governor Greg Abbott (3/14/20)
Virginia - Reducing driver training school regulations to minimize customer contact
Virginia will "minimize customer contact during driver training at Class B Virginia Driver Training Schools by: Waiving the two-student minimum requirement under the Virginia Driver Training Schools Regulations; Waiving the student-to-student observation periods during in-vehicle instruction; and Allowing one-on-one in-vehicle instruction." - Office of Governor Ralph Northam (3/17/20)
"I direct the Virginia Department of State Police (VSP) to undertake the following measure: Suspend the enforcement of Motor Vehicle Safety Inspections (MVSI) required under § 46.2-1157 of the Code of Virginia." - Office of Governor Ralph Northam (3/19/20)
Virginia - Lifted "Certificate of Need" law regarding hospital beds
""That order lifts our certificate of public need restrictions, so that our health commissioner can give hospitals and nursing homes the authority to add the beds they need without going through red tape," Northam said, during a Saturday morning press briefing. "They can act quickly to respond to the needs in this fast-changing situation."" - Patch (3/21/20)
Washington - Allows for out-of-state licensed professional to volunteer in Washington
"Under RCW 70.15.050, while an emergency proclamation of the Governor is in effect, a volunteer health practitioner who is licensed in another state may practice in Washington without obtaining a Washington license if he or she is in good standing in all states of licensure and is registered in the volunteer health practitioner system." - Washington Department of Health (3/2020)
Washington, DC - Allowing the delivery of alcohol
"The bill passed at the most recent meeting has… allowed for delivery and carry-out sales by restaurants of beer/wine, if sold along with prepared food (pending written restaurant-by-restaurant approval by the Alcohol Beverage Regulation Administration)." - Council of the District of Columbia (3/17/20)
Suspended local rules and regulations:
Los Angeles, CA - Allowing restaurants to sell alcoholic beverages for delivery or takeout
The order modified "any and all City of Los Angeles regulations governing the sale of alcoholic beverages to “allow (i) sales of alcoholic beverages by restaurants for off-site consumption are hereby permitted for delivery and take-out and (ii) sales, by retail stores, of alcoholic beverages for off-site consumption, including deliveries and extended sales hours, from 6 a.m. to 2 a.m. daily." - Office of Los Angeles Mayor Garcetti (3/23/20)
Los Angeles, CA - Relaxes parking restrictions on commercial vehicles
The order also provides that, “Parking enforcement will be relaxed and an extended grace period will be given to vehicles owned and operated by employees or employers who are engaged in manufacturing or healthcare activities listed as essential under the March 15, 2020 Public Order Under City of Los Angeles Emergency Authority and located in permanent or temporary industrial, manufacturing, or commercial zones of the City of Los Angeles.” - Office of Los Angeles Mayor Garcetti (3/23/20)
"Any sale of sealed cans or bottles of alcoholic beverages to customers taking delivery of prepared food from a restaurant within the City, also licensed to serve on-sale alcoholic beverages by way of “take-out,” “curbside delivery,” “drive-through,” or by other lawful means of delivery shall be deemed to be “on-sale” service or sale of such alcoholic beverages. Delivery of prepared food without any accompanied sale of alcoholic beverages may be delivered by agents or third party delivery services. Employees who deliver alcoholic beverages must be at least twenty-one (21) years old and be able to provide proof of age if asked by the City of West Fargo." - City of West Fargo (3/25/20)
"The Fargo City Commission has approved the curbside, to-go sale and delivery of alcohol within Fargo city limits for a period of 30 days beginning Monday, March 23." - Valley News (3/23/20)
This list will be updated constantly as rules continue to be suspended. If you know of a rule suspension not included above, please send to ideas@atr.org
Photo Credit: MarylandGovPics
CARES Act Repeals Obamacare Medicine Cabinet Tax
Another Obamacare tax on the middle class bites the dust
In a win for over 26 million Americans with a Health Savings Account (HSA) and the 35 million with a Flexible Spending Account (FSA), the Coronavirus Aid, Relief, and Economic Security (CARES) Act repeals Obamacare’s onerous Medicine Cabinet Tax.
The Obamacare Medicine Cabinet Tax prohibits Americans from using HSAs or FSAs to purchase thousands of over the counter medicines like cold and flu drugs, allergy medication, children’s fever relievers, and menstrual cramp relief medication. Under the tax, only prescription medicines qualified as an HSA/FSA expense.
The CARES Act strikes the last sentence of sub-paragraph A of Sec. 223(d)(2) in the tax code to remove this restriction.
Upon President Trump’s signature, Americans will be able to purchase thousands of over the counter medical products using pre-tax dollars, a big help for cash-strapped households.
The bill also allows Americans to use pre-tax dollars for the purchase of menstrual products, defined as a “tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation or other genital-tract secretions.”
HSAs are tax-advantaged savings accounts that individuals can use to pay for qualified medical expenses. Since they were created in 2004, HSAs have become a popular and successful vehicle for individuals to spend and save their own money for a wide array of healthcare needs.
FSAs are employer-sponsored accounts that individuals can use to pay for medical expenses.
The Medicine Cabinet Tax was one of the many Obamacare tax increases on the middle class and a violation of the Obama-Biden pledge not to raise any tax on any American making less than $250,000 per year.
By forcing Americans with FSAs and HSAs to use post-tax dollars to purchase these necessary items, Obamacare raised taxes on these households by $8.5 billion over a ten year period.
By repealing Obamacare’s costly and onerous Medicine Cabinet Tax, the CARES Act provides important flexibility and tax relief for middle-class Americans that use HSAs or FSAs to pay for medical expenses.
Photo Credit: Ben Schumin
Senate Coronavirus Bill Contains Important Tax Cuts for Individuals and Businesses
The Senate Coronavirus emergency relief legislation, known as the “Coronavirus Aid, Relief, and Economic Security (CARES) Act”, contains numerous tax cuts that will offer individuals and businesses much needed liquidity during the pandemic.
According to the Joint Committee on Taxation, the legislation reduces taxes for businesses by $275 billion over the budget window. In all, the bill cut taxes by almost $600 billion.
These broad-based tax cuts will give businesses the flexibility to meet expenses including payroll during this unprecedented economic and health crisis. Not only will this ensure individuals continue getting paid, but the tax cuts will also give Americans flexibility over retirement accounts and charitable contributions.
Specifically, the bill:
- Allows businesses to carryback losses incurred in 2018, 2019, and 2020 for five years.
- Broadens the ability of businesses to deduct net interest expenses from 30 percent of EBITDA (earnings before interest, tax, depreciation, and amortization) to 50 percent of EBITDA for 2019 and 2020.
- Fixes the “retail glitch” so that qualified improvement property can be immediately deducted instead of depreciated over 39.5 years.
- Allows companies to delay paying 50 percent of employer payroll taxes until 2021 and 2022.
- Creates a 50 percent employer payroll tax credit from March 13 to the end of 2020. Credit is capped at $10,000 of wages per employee per quarter.
- Creates an above the line charitable deduction of $300 for 2020.
- Waives required minimum distribution rules for 2020.
- Allows penalty free distribution of $100,000 from retirement account for coronavirus distributions.
Photo Credit: ComputerGuy - Flickr
Despite Republican Progress, Congress Should Continue Working To Repeal All of Obamacare's Taxes
Ten years ago from Monday, Obamacare was signed into law on a party line vote. Since then, the law has resulted in skyrocketing premiums, billions of dollars in wasteful spending, and millions of Americans losing their healthcare plans.
Obamacare also imposed a trillion dollars in new or higher taxes on middle class Americans and on the healthcare system.
Many of these taxes have since been repealed by President Trump and Republicans in Congress, offering relief to families and businesses.
Republicans eliminated Obamacare’s highly regressive individual mandate penalty, a tax that forced Americans who could not afford government-approved insurance to pay a tax ranging from $695 for individuals to $2,085 for families.
The individual mandate tax disproportionately targeted the middle class – in 2017, 4,654,990 households paid $3,666,084,000 in individual mandate tax penalties. 74 percent of those households had annual income of less than $50,000, and 32 percent of those households had annual income of less than $25,000.
Three other Obamacare taxes were repealed at the end of last year.
The first was the medical device tax, a 2.3 percent excise tax on the sale of necessary and lifesaving medical devices such as MRI machines and hospital beds. The tax reduced research and development funding by $34 million in 2013 and caused a loss of about 28,000 jobs over the three years it was in effect. The Tax Foundation predicted this tax would reduce GDP by $1.7 billion and kill 21,390 full-time jobs over just two years.
The second was the health insurance tax (HIT), an annual tax on insurance premiums. This tax increased costs for middle class workers, seniors, and small businesses. The HIT was also highly regressive, with Americans earning less than $50,000 per year paying half of the tax. If it was not repealed, small businesses would have lost 286,000 jobs, and small businesses combined with middle class taxpayers would have had to pay more than $130 billion through the tax over a decade.
The third was the Cadillac tax, a 40 percent tax on employer-provided plans that exceed $10,200 for individuals and $27,500 for families. The tax was extremely unpopular with 81 percent of Americans in a 2018 poll stating they were opposed to it. The Kaiser Family Foundation found that if the tax were to have gone into effect in 2022, as scheduled, it would have cost families up to $3,400 annually. Repealing the Cadillac Tax was a $193 billion tax cut over the next decade, according to a recent Congressional Budget Office report.
While Congress has made great strides in repealing some of Obamacare’s most destructive and regressive taxes, lawmakers should continue working to repeal all Obamacare taxes moving forward. There are numerous taxes still in effect that are causing harm to taxpayers and the economy.
Obamacare’s employer mandate tax requires employers to pay $2,000 per full time employee for whom the employer does not provide government approved health coverage and at least one employee qualified for a health tax credit. According to the CBO, the mandate costs businesses $166.9 billion over ten years.
The net investment income tax imposes a 3.8 percent capital gains tax, creating a new top rate of 23.8 percent. The tax is also imposed on investment income, above $200,000 for individuals or above $250,000 for married filers, and for small businesses filing through the individual income tax system. Since the tax is not adjusted for inflation, it has grown significantly since it was first imposed.
Obamacare also imposed a 0.9 percent Medicare payroll tax on workers earning more than $200,000, or $250,000 for couples. Over a decade, the Obamacare payroll tax costs Americans $123 billion.
While these are some of the largest taxes still in effect, there are others on the books including the tanning tax, the Health Savings Account withdrawal tax, and the Flexible Spending Account tax. These should all be repealed.
Congress has made tremendous progress in repealing Obama-era taxes that hurt workers, businesses, and the economy as a whole. Congress and President Trump can build on their past successes by repealing all remaining Obamacare taxes, and improve the American healthcare system at a time when it needs relief the most.
Photo Credit: Flickr - Matt Johnson
Map Of States With Delayed Tax Filing Deadlines
The Internal Revenue Service recently announced that the upcoming federal income tax filing deadline is moved from April 15 to July 15, 2020.
“Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed,” explains a March 21 statement released by the IRS. “This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”
Now state government officials across the U.S. are taking action to delay their tax filing deadlines in order to sync up with the extended federal deadline, which will help avoid taxpayer confusion and also increase household and small business liquidity at time of economic uncertainty.
The 25 states shaded green on the above map have moved their filing deadline to the same as the new federal deadline of July 15. The six states colored yellow have delayed their filing deadlines but, to an extended date that is different than the new federal deadline of July 15. The extended dates for those six states are:
Hawaii - July 20
Idaho - June 20
Iowa - July 31
Maryland - June 1
Mississippi - May 31
Virginia - June 1
In the seven states with no income tax, shaded gray, this issue is moot. 12 states, shaded blue in the map above, have yet to take action on the matter. These include: Delaware, Georgia, Illinois, Maine, Michigan, New Hampshire, New Jersey, New York, North Dakota, Ohio, West Virginia, and Tennessee.
Democrats are Politicizing the Coronavirus to Push Liberal Priorities
House Speaker Nancy Pelosi (D-Calif.) and Democrats in the House and Senate are politicizing the Coronavirus pandemic in an attempt to pass a wishlist of far-left priorities.
Senate Democrats are refusing to begin consideration of bipartisan phase three Coronavirus emergency legislation and have blocked the bill twice since Sunday evening. This obstruction comes even as Senate Minority Leader Chuck Schumer (D-NY) called for the Senate to act “immediately” as recently as last week.
The proposal, known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, would provide much-needed liquidity for businesses and individuals. It would deliver relief to Americans that are struggling to pay their bills and ensure that medical providers have the resources they need.
Contrary to the Democrat talking points, the bill does not include a slush fund for corporations. Instead, it provides loans for businesses so they can continue paying their employees and meet other expenses. This is urgently needed and will help American families keep the lights on. In addition, taxpayers are protected. Since they are loans, they come with conditions and must be repaid.
Democrats continue to mislead on this provision and are claiming the bill helps corporations over middle class families. This is not true - the proposal also grants liquidity funding in the form of direct payments to small businesses and individuals.
Throughout the process, Democrats demanded the inclusion of several priorities such as increased funding for hospitals and medical services, increased funding for state and local governments, and increased funding for unemployment insurance.
After negotiations, the legislation was amended to meet these requests. Billions and in some cases hundreds of billions in funding exists for these priorities. For instance, the legislation contains $250 billion in funding for unemployment benefits which will ensure an additional $600 in unemployment payments for recipients for three months.
The legislation also contains $75 billion in funding for hospitals, and funding for state and local governments in the form of loans through the supposed slush fund that Democrats have lambasted.
Over in the House, Speaker Pelosi has released a 1,200 page bill that goes even further. One of Pelosi’s deputies, House Majority Whip Jim Clyburn (D-SC), said last week that the emergency is “a tremendous opportunity to restructure things to fit our vision.”
Democrats are now pushing countless proposals that are unrelated to the Coronavirus pandemic including mandating airline carbon emissions, prohibiting businesses that take loans from petitioning the federal government, wind and solar tax credits, and permitting federal employees to conduct union work on the taxpayers’ dime.
These proposals do not represent a good faith effort to deliver assistance to American families and businesses during the pandemic. Instead, it is an unabashed attempt to exploit the crisis to enact long-held liberal priorities.
Photo Credit: Victoria Pickering
West Virginia Passes Legislation to Protect Citizen Privacy
In a win for citizens’ ability to advocate on issues they care about, West Virginia legislators recently passed Senate Bill 16, also known as the “Protect Our Right to Unite Act”. With bipartisan support, the bill passed unanimously, 34-0, and was signed into law by Governor Jim Justice.
Senate Bill 16 is intended to prevent the state government from releasing personal information for people who contribute to a wide variety of nonprofit organizations – a principle that has long been upheld by a Supreme Court decision.
Personal privacy is critical for protecting individuals from retribution, whether by government officials or groups like labor unions or Antifa, that can have a chilling effect on free speech and undermine the ability of citizens to hold government accountable.
The bill provides necessary protection for citizens by protecting the security of their personal information from public disclosure by government agencies. A similar bill, Senate Bill 414, passed the Senate but died in the chamber’s Judiciary Committee in 2019.
This legislation reaffirms West Virginians’ fundamental right of freedom of association. Following Mississippi and Arizona, West Virginia is the third state to sign vital citizen privacy legislation into law. Other states would be smart to follow suit and show they value their citizens’ privacy by passing similar legislation.
Photo Credit: Sky Noir
ND Governor Doug Burgum Streamlines Regulations in Order to Help Fight COVID-19
Americans for Tax Reform commends North Dakota Governor Doug Burgum for his actions to streamline rules and regulations in order to help residents during the COVID-19 pandemic. Burgum's orders have been added to Americans for Tax Reform's tracker of federal and state waivers and suspensions of burdensome regulations in order to help Americans get needed treatment and supplies.
In addition to streamlining medical licensing and telemedicine policies to help North Dakotans, Burgum ordered state agencies to identify "any state laws, rules or regulations that hinder or delay their ability to render maximum assistance or continue to deliver essential services to citizens during the COVID-19 crisis."
Agencies must give their recommendations to the Governor by Tuesday at 5:00 p.m.
ATR encourages all other governors to invite their state agencies to do the same.
An excerpt of the executive order is below:
NOW, THEREFORE, Doug Burgum, Governor of North Dakota, by virtue of the authority under Article V, Section 1 of the North Dakota Constitution and North Dakota Century Code Chapter 37-17.1, hereby orders all state agencies to identify provisions of any regulatory statutes, agency orders, or administrative rules that in any way prevents, hinders or delays the agency's ability to render maximum assistance or continue to deliver essential services to citizens during the pendency of the COVID-19 crisis. This order also requires state agencies to identify any statutory or regulatory requirements related to acquiring or renewing licenses or certifications essential for individual citizens and businesses providing services in this State. Of utmost importance are those services related to health, education, employment and any other service provided by state agencies and offices in response to or for purposes of mitigating the spread of COVID-19.
All Stage agencies shall submit these provisions of regulatory statutes, agency orders or administrative rules meeting the criteria defined in this Order to the Governor's office on or before 5:00 p.m. on Tuesday, March 24, 2020.
State elected officials and the offices within the executive branch are hereby invited to identify provisions of regulatory statutes, agency orders or administrative rules that in any way prevents, hinders or delays the ability to render maximum assistance or continue to deliver essential services to citizens during the COVID-19 crisis. Elected officials are also invited to identify any statutory or regulatory requirements related to acquiring or renewing licenses or certifications for individual citizens and businesses providing services in this state, with emphasis on services and licensing related to health, education, employment and any other service provided by state agencies and offices in response to or for purposes of mitigating the spread of COVID-19.
To further facilitate services to citizens and businesses, all North Dakota Law Enforcement Agencies and private sector businesses operating in this state are hereby directed to recognize any North Dakota driver's license or North Dakota motor vehicle registration, expired on or after March 1, 2020, as valid and current while this Executive Order is in effect.
Click here to see ATR's constantly updated tracker of COVID-19 related suspensions and waivers.
Photo Credit: Military Photo
Coalition Supports Senator Cruz’s Pandemic Healthcare Access Act
Update: Congressman Ted Budd has introduced the Pandemic Healthcare Access Act in the House of Representatives.
ATR President Grover Norquist led a letter of 30 organizations in support of Senator Cruz’s Pandemic Healthcare Access Act. This legislation allows all healthcare plans to use Health Savings Accounts during the duration of the Coronavirus pandemic.
[Click here to read the full letter]
Currently, there is a mandate that any American wanting to open or contribute to an HSA must be on a high-deductible health plan.
Senator Cruz’s legislation would pause this mandate in order to help mitigate the pandemic by Americans in Medicare, Affordable Care Act health plans, TRICARE, the VA, Indian Health Service and any employer plan to use HSAs. It will also help individuals pay for their deductible or any increased health care costs, allow HSA funds to pay for direct primary care, and allow telemedicine below the deductible.
As lawmakers continue working through proposals to address the pandemic, they should support and pass the Pandemic Healthcare Access Act.
You can read the full letter here or below:
Dear Leader McConnell:
As you continue working to address the Coronavirus pandemic, we urge policymakers to temporarily de-couple Health Savings Accounts (HSAs) from high-deductible health plans (HDHPs) as has been proposed by Senator Cruz and Congressman Ted Budd in the Pandemic Healthcare Access Act.
This proposal will help mitigate the public health crisis by allowing Americans in Medicare, Affordable Care Act health plans, TRICARE, the VA, Indian Health Service and any employer plan to use HSAs. It will also help individuals pay for their deductible or any increased health care costs, allow HSA funds to pay for direct primary care, and allow telemedicine below the deductible.
HSAs are currently used by almost 30 million American families and individuals. They empower healthcare mobility and choice, reduce taxes, and are a powerful tool for savings.
However, there is currently a mandate that any American wanting to open or contribute to an HSA must be on a high-deductible health plan. This restricts how funds can be spent and which plans qualify for an HSA.
Ending this mandate would give millions of individuals and families access to a portable, tax-advantaged savings vehicle, that can be used on healthcare expenses. This will especially benefit high-risk populations like seniors that consume greater levels of care.
Suspending the HSA HDHP mandate will help strengthen public health and ensure that Americans have access to the care they need at a time when they are required to self-quarantine to prevent mass infection. As you continue working to mitigate this pandemic, we hope you will support this request.
Sincerely,
Grover Norquist
President, Americans for Tax Reform
Jim Martin
Founder/Chairman, 60 Plus Association
Saulius “Saul” Anuzis
President, 60 Plus Association
Bob Carlstrom
President, AMAC Action
Phil Kerpen
President, American Commitment
Brent Wm. Gardner
Chief Government Affairs Officer, Americans for Prosperity
Robert Alt
President, The Buckeye Institute
Norm Singleton
President, Campaign for Liberty
Matthew Kandrach
President, Consumer Action for a Strong Economy
Ryan Ellis
President, Center for a Free Economy
Andrew F. Quinlan
President, Center for Freedom and Prosperity
Jeffrey Mazzella
President, Center for Individual Freedom
David McIntosh
President, Club for Growth
Katie McAuliffe
Executive Director, Digital Liberty
Timothy Head
Executive Director, Faith & Freedom Coalition
Adam Brandon
President, FreedomWorks
George Landrith
President, Frontiers of Freedom
Naomi Lopez
Director of Healthcare Policy, Goldwater Institute
John Goodman
President and CEO, Goodman Institute for Public Policy Research
Jessica Anderson
Vice President, Heritage Action for America
Dan Perrin
Executive Director, HSA Coalition
Beverly Gossage
President, HSA Benefits Consulting
Andrew Langer
President, Institute for Liberty
Heather Higgins
CEO, Independent Women’s Voice
Seton Motley
President, Less Government
Pete Sepp
President, National Taxpayers Union
CL Gray, MD
President, Physicians for Reform
Jonathan Bydlak
Director of the Fiscal/Budget Policy Project, R Street Institute
David Williams
President, Taxpayer Protection Alliance
Jenny Beth Martin
Honorary Chairman, Tea Party Patriots Action
Amy Kremer
Chairman, Women for America First
Cc:
President Donald Trump
HHS Secretary Alex Azar
Treasury Secretary Steven Mnuchin
National Economic Council Director Larry Kudlow
Senate Finance Committee Chairman Chuck Grassley
House Republican Leader Kevin McCarthy
House Ways and Means Republican Leader Kevin Brady
All GOP Members of the House and Senate
Photo Credit: Gage Skidmore
State news
Top Stories
![Sky Noir]( <p style="font-size: 0.9rem;font-style: italic;"><img style="display: block;" src="https://live.staticflickr.com/918/41429246230_bfb578cd49_b.jpg" alt="West Virginia State Capitol"><a href="https://www.flickr.com/photos/49788302@N00/41429246230">"West Vir){kind=link}