Wednesday, President Trump and congressional Republicans rolled out a sweeping tax overhaul proposal that would radically slash business taxes, trim the number of individual tax rates to around three brackets, and expand the standard deduction and child tax credit for individuals. The plan has been applauded by Republicans, as well as business groups and the far-right House Freedom Caucus, who argue it would provide the country with a fairer, simpler tax system. Opposing the blueprint, Democrats contend that proposal delivers tax cuts for the rich at the expense of the middle-class.   

Today, the American Institute of Architects responded to the tax reform proposals advanced by the Administration and Congressional Republicans issuing caution and releasing the following statement by AIA 2017 President Thomas Vonier, FAIA:

Any tax reforms must do three basic things:

• Support and strengthen small businesses, which account for the vast majority of U.S. architecture firms.
  
• Encourage innovative, economically vibrant, sustainable and resilient buildings and communities.
  
• Treat all taxpayers fairly.

We are reviewing these proposals carefully, to see how they align with our principles to support good design and strong communities

It is encouraging that the proposal retains the low income housing tax credit, because that is good public policy.  So is maintaining fair tax rates for thousands of small and family-owned businesses organized as partnerships or Subchapter S Corporations—that is the majority of U.S. architecture firms.

However, many of the details necessary to judge this proposal fully are lacking. Recent analyses suggest that some architecture firms could be treated unfairly, simply because they provide 'professional services.'

The proposals also leave open the possibility that tax policies promoting good design could be eliminated. This includes historic building tax credits, which have done so much to preserve the legacy of American architecture for future generations.  We also want to maintain incentives for sustainable design, like the 179D energy-efficient commercial buildings tax deduction, which we know creates jobs, saves money, and helps the environment.

As these proposals move forward, Congress must hold open and transparent hearings, so that the people and businesses who are directly affected by these proposals have a voice in their development. As architects, we stand ready to take an active and prominent part in this process. Tax reform is about more than abstract numbers; these policies have real impacts on small businesses and communities throughout the country.