Last week President Donald Trump met with House Republicans to discuss their legislative strategy to renew the expiring Tax Cuts and Jobs Act (TCJA) provisions. House and Senate Republican leadership differ on how to use the budget reconciliation process to advance several of Trump’s domestic policy priorities on immigration, defense and taxes. The House wants to include a number of these in one bill that would garner the support of the entire Republican conference, but the Senate intends on moving two separate bills, with tax legislation coming at the end of the year.

During the meeting, Trump outlined his tax priorities, which include campaign promises to end taxes on tips and bring back the deduction for state and local taxes. He also stated his desire to end capital gains treatment for carried interests, a proposal that NAIOP has consistently opposed because of the negative impact it would have on many real estate partnerships. Republicans have in the past opposed changes to the tax treatment of carried interests.

The Senate Budget Committee, led by Senator Lindsey Graham (R-SC), intends to start moving on its two-bill approach beginning this week. While House Speaker Mike Johnson (R-LA) said last week that the House would also begin the process this week, remaining disagreements with some hardline fiscal conservatives could result in additional delays.