Nevada senator wants to close tax deduction loophole for lobbyists

WASHINGTON — In the midst of the tax-cut battle on Capitol Hill, Sen. Catherine Cortez Masto plans to file legislation Wednesday that would close a loophole used by corporate lobbyists influencing policy on the local level.

“It’s time we eliminate loopholes that put everyday Americans on the hook for special interests’ lobbying and backroom deals,” said Cortez Masto, D-Nev.

Under the current tax code, lobbyists and businesses are prohibited from deducting their expenses when they try to sway federal and local lawmakers. But those expenses are deductible when lobbying tribal, county or local governments.

Cortez Masto said her bill would end taxpayer subsidies for special interests “and closes a loophole that gives unnecessary tax breaks for lobbyists.”

The Joint Committee on Taxation estimates that closing the loophole would increase federal revenues by nearly $1 billion over a 10-year period.

Senate Republicans are pushing a $1.4 trillion tax-cut package that reduces corporate tax rates, eliminates the alternative minimum tax and provides other incentives for business growth.

It also includes temporary cuts for taxpayers and doubles the standard deduction on federal forms.

Democrats have opposed the Republican tax-cut plan as one that provides breaks to corporations and big business at the expense of working families. Families making less than $75,000 would see a tax hike under the GOP plan, according to the Joint Committee on Taxation.

The Cortez Masto bill would need Republican support to pass, or be included in pending tax-cut legislation.

As the Senate works on tax reform, Cortez Masto said lawmakers should strive for a tax code that “works for Nevada’s hardworking families, not for special interests.”

Contact Gary Martin at gmartin@reviewjournal or 202-662-7390. Follow @garymartindc on Twitter.