Hoosier Banker 7 Trump signed into law, a comprehensive tax reform bill – the first overhaul of the U.S. tax code in more than three decades. An advocacy win for the banking industry, the landmark legislation sets the tax rate for C corporations at 21 percent and provides a 20 percent deduction for Subchapter S banks and other pass-through entities. Other provisions of the tax reform bill include establishment of a top individual tax rate of 37 percent; elimination of the corporate alternative minimum tax; capping the mortgage interest deduction for new mortgages of $750,000 or more; retention of the low-income housing and new markets tax credits; deductibility of net interest expense limited to 30 percent of adjusted gross income for businesses, with more than $25 million in annual gross receipts; and elimination of net operating loss carrybacks, with a limitation on carryforwards. The IBA GR team will be reporting on implications for banks as details unfold. On this and other issues, such as mortgage relief and cybersecurity, the IBA will continue to advocate for enabling banks to serve their customers and communities. Please pay heed to IBA action alerts, so you can add your voice to the chorus. Another primary goal for this year – a new one – is to work toward instituting a university banking major. Indiana has outstanding universities, and we can be a national leader on this effort. This banking major, combined with an intensive internship program that the IBA is coordinating, will help to bring the best and brightest to our industry – critical for the future of banking. This year will be full and exciting as our plans unfold. Thank you for the honor of electing me to serve as your chairman. The IBA is blessed with an engaged, active membership, and I look forward to working with you in the months to come. HB Imagine being a legislator, with days and evenings packed with meetings, events, gatherings and countless other obligations. Also imagine that, as a legislator, you must cast votes on topics that you may not have a background in, but those votes will have far-reaching repercussions on the lives and livelihoods of others. Wouldn’t you want expert guidance, especially on complicated topics? This very real pressure is why our elected officials actually welcome hearing from bankers on banking topics. No one can better explain the complexities of this industry than the professionals who devote their careers to it. It’s important to recognize that legislators want to hear from us, as we consider how to be engaged in grassroots advocacy. As 2018 chairman of the Indiana Bankers Association, one of my goals is to promote a deepened sense of grassroots advocacy among members. A prime opportunity to meet with legislators and present your point of view is coming up on Jan. 30, when the IBA hosts its annual legislative briefing and reception in downtown Indianapolis. It is always a worthwhile event to attend, given the impact that legislative decisions can have on the industry. At the briefing, which starts at 4 p.m., you’ll hear a summary from IBA’s government relations team on what issues to expect to arise this session at the Statehouse, and how various pieces of legislation could impact your bank. Following the briefing is the legislative reception itself, during which you’ll have a chance to meet with and talk to the legislators who will be voting on those issues. Does grassroots advocacy work? Thanks to bankers lifting their voices, there has been recent progress on Capitol Hill. In early December, the Senate Committee on Banking, Housing, & Urban Affairs passed S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. This regulatory relief package was a bipartisan effort, and much credit goes to Sen. Joe Donnelly for garnering support for it. Among other features of the act are provisions for the rightsizing of rules that apply to community banks. Also, in a late-year legislative breakthrough, the U.S. House and Senate passed, and President Clay W. Ewing Chairman Indiana Bankers Association President, Chief Banking Officer and Secretary to the Board of Directors German American Bancorp Inc., Jasper CHAIRMAN’S REPORT Post your openings on the premier career website for the banking industry, brought to you by the Indiana Bankers Association and other state bank trade associations. BankTalentHQ.com
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