Pub. 12 2017-2018 Issue 5

WWW.NEBANKERS.ORG 8 WASHINGTON UPDATE TEXTBOOK ADVOCACY Rob Nichols, President & CEO, American Bankers Association W ASHINGTON IS ANYTHING BUT TEXTBOOK THESE DAYS, which can make the advocacy work of state and national trade associations a challenge. But the recent tax reform effort proves that certain staples of effective advocacy—functions at which ABA and the state as- sociations happen to excel—have enduring value. All were on display as Congress and the administration worked together on a comprehensive package of tax reforms that we believe will help grow the economy and create jobs. They also will help banks, which previously had one of the highest effec- tive tax rates of any business, better serve their customers and the broader economy. Those staples of effective advocacy include building respect- ful relationships and coalitions, speaking with a unified voice, offering expert analysis, and showing discretion on when and how to offer public criticism. We were engaged in the tax reformdebate from the very start, offering advice and insight on the potential effects of various provisions—such as the impact of limiting net interest deduct- ibility—and coordinating closely with our state association al- lies. We also worked closely with other groups in the financial services industry, hosting daily calls to ensure our advocacy was united and effective. At every turn in the legislative process, we worked respect- fully with lawmakers to improve the bill. Recognizing the tightrope lawmakers were walking to create a comprehensive bill that would have sufficient support, we as an industry were careful to offer pragmatic, constructive feedback, not public condemnations or threats that could have derailed the effort. This approach made a difference. Lawmakers, for example: • Adopted a careful approach to limiting net interest de- ductibility, protecting banks’ small business, agriculture,