Tax Reform Gets Under Way; Special Interest Groups Already Bustling And More ... (Beltway Buzz - October 6, 2017)

The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what's happening in Washington, D.C. could impact your business.

Tax Reform Gets Under Way; Special Interest Groups Already Bustling. As soon as the Republican-controlled Congress cast aside (however momentarily) its attempts to repeal the Affordable Care Act (ACA) to focus on tax reform, K-Street lobbyists commenced their expected trek to the Capitol. Apprehensive that their pet tax deductions might be in danger, representatives of special interest groups began clamoring for lawmakers' attention. Judging from initial reports, the Republican proposal would lower the corporate tax rate, lower the top personal income tax rates, eliminate the alternative minimum tax and estate tax, and—in Steven Mnuchin's words—eliminate "lots of deductions." Though vague on detail, a blueprint released last week seemed to indicate that certain cherished tax deductions, such as deductions for mortgage interest and charitable giving, might be at least somewhat safe. Importantly for the employee benefits industry, so are—for now—"tax breaks for retirement plans." Everything is subject to change, and the actual value in dollars of some of these deductions might be diminished if, as expected, the standard deduction is doubled or otherwise increased. In response to the intense lobbying efforts, Republicans are already seemingly backing off from a proposal to eliminate the deduction for state and local income taxes, which disproportionately affect residents of states having high income tax rates. Industry is certain to attack each and every proposed elimination tooth and nail, and it should be interesting to see which cuts—if any—remain at the end of the day. (Hat tip to Stephanie A. Smithey, Timothy G. Verrall, and Richard C. Libert.) Arbitration at the Supreme Court. On Monday, October 2, the Supreme Court of the United States kicked off its October 2017 term by hearing oral argument on the legality of class action waivers in employment arbitration agreements. Ron Chapman, Jr. and Christopher C. Murray have the play-by-play of the oral argument in the three cases dealing with this issue that have been consolidated before the Court: National Labor Relations Board v. Murphy Oil USA, Inc.; Epic Systems Corp. v. Lewis; and Ernst & Young LLP v. Morris. As Ron and Chris note, Justice Gorsuch was silent during the argument. Because Gorsuch is still new to...