Senate Tax Reform to Include Scott’s Investing in Opportunity Act
Washington – U.S. Senator Tim Scott (R-SC) announced that the amended Senate tax reform plan will include his bipartisan Investing in Opportunity Act (IIOA). The IIOA changes the way capital gains are taxed when those gains are reinvested long-term in distressed communities. Scott has led the push for the legislation as a central part of his Opportunity Agenda.
“This is fantastic news for low-income and distressed communities across the nation,” Senator Scott said. “With more than 52 million Americans living in these communities, bringing long-term investment will help create jobs, spur entrepreneurship and small business, and restore hope where it has been fading for far too long. The Investing in Opportunity Act makes our strong tax reform package even more helpful for hardworking American families, who have been waiting for tax relief for more than a generation.”
There are currently trillions of dollars in unrealized capital gains in the United States. The IIOA incentivizes investors to make substantial, long-term investments in distressed communities by changing how capital gains are taxed when those investments are made. It creates a win-win scenario for these communities and investors. The Investing in Opportunity Act is cosponsored by fellow Finance Committee member Rob Portman (R-OH), as well as Senators Cory Booker (D-NJ), Roy Blunt (R-MO), Michael Bennet (D-CO), Lindsay Graham (R-SC), Chris Coons (D-DE), Shelley Moore Capito (R-WV), Kirsten Gillibrand (D-NY), Gary Peters (D-MI), Cory Gardner (R-CO), Maggie Hassan (D-NH), Joni Ernst (R-IA), Todd Young (R-IN) and Mark Warner (D-VA).
Additionally, the amended Senate tax bill now includes an amendment Senator Scott cosponsored with Senator Dean Heller (R-NV) to double the child tax credit to $2,000. The senators also worked closely with Senators Marco Rubio (R-FL) and Mike Lee (R-UT) on this provision.
“We set out to ensure that tax reform would help hardworking American families, and an increased child tax credit will do just that,” Senator Scott said. “As the child of a single mother, I truly can’t overstate how important these dollars will be for parents across the country, be it to help buy school supplies, a new pair of sneakers or just have a night out as a family. I want to thank Senators Heller, Rubio and Lee for their work on this issue.”
The Senate Finance Committee will continue their markup of the Tax Cuts and Jobs Act all week.