Pub. 14 2017 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Issue 3 • 2017 7 this enormous undertaking, providing analysis and expertise. We also are encouraging bankers to raise this topic in meetings with their elected representatives. Of course, like others, we have strong opinions about specific provisions, like the deductibility of interest and the tax-favored status of bank competitors. But we also know that economic growth — which tax reform is intended to spur — is priority number one for our industry, and that any package put forward must be evaluated as a whole, based on its net impact on the economy, banks and bank customers. That is why we developed a set of core principles for tax reform that will serve as the basis for our comprehensive analysis of any package that emerges from the deliberations. Those principles, which are available in full on aba.com, urge policymakers to: • Lower rates for all businesses substantially — 15 to 20 percent has been proposed — to boost growth and allow U.S. businesses to be competitive in the global market • Broaden the base and simplify the tax code to level the playing field • Specifically eliminate favored tax treatment enjoyed by credit unions and the Farm Credit System • Consider carefully the effects of any potential effort to limit the deductibility of interest, which could ad- versely impact economic growth. (The extent of tax rate reductions will be a key factor in assessing the broader impact of any changes to the deductibility of interest.) • Avoid industry-specific taxes, which would be punitive, unfair and slow economic growth • Provide adequate transition time for the market and balance sheets to adjust to the new system ABA developed these principles through an internal tax reform working group that has coordinated closely with ABA’s banker-led Taxation Administrative Committee and solicited feedback from bankers in various forums. We have highlighted the principles in communications to Capitol Hill, informing members that we will strongly support tax reform efforts that align with these principles. Our goal is to encourage a smart approach to comprehensive tax reform that can help America’s communities thrive. As a veteran of the Treasury Department in the early 2000s when tax cuts were enacted, I know this undertaking is hard — I have thebruises toprove it.But thatdoesn’tmean it can’tbedone. It can,andweshoulddoeverythinginourpowertomakeithappen. n E-mail Rob Nichols at nichols@aba.com . The Advisors’ Trust Company ® Zia Trust, Inc. 505.881.3338 www.ziatrust.com 6301 Indian School Rd. NE Suite 800, Albuquerque, NM 87110 • We work alongside your clients’ investment advisor • Certificate of insurance available upon request • Dual and triple controls on all disbursements • Top quality bonding and professional liability insurance • Engaged and responsible Board of Directors • Strict separation of duties • Annual Regulatory Examinations – New Mexico, Arizona • Annual Financial Audit – independent CPA firm • Annual Operations Audit – independent CPA firm Trust Administration with Professional Controls