April 8, 2021 marks two years since I joined the staff of the National Club Association (NCA), and it would be an understatement to say it’s been quite a remarkable time to be working in Washington on behalf of clubs—and serving as president of a private club. My two-year term as president of Mount Vernon Country Club in Alexandria, Va., came to a close on January 1 and from the perspective of both roles I would like to thank all within the club community who came forward to lend their expertise to NCA during the pandemic by serving as panelists for over 40 webcasts. These webcasts were made available to all clubs regardless of membership status in NCA, and as president of a country club last year, I know those resources were invaluable in successfully navigating through the toughest times of the pandemic.
As I’ve mentioned in previous columns, advocacy in the midst of a pandemic has been affected as well and at times has been quite a challenge. For most of the last year, Congress has been focused on managing the impact of the pandemic and trying to mitigate the effect on the economy. With vaccine uptake reaching roughly 25% of the U.S. population as of this writing, we appear to be on track to bring a merciful end to this public health crisis.
In 2021, Congress has enacted two major coronavirus packages. The final omnibus appropriations bill contained significant relief and the American Rescue Plan signed by President Biden on March 11 appears to be the last of major relief measures Congress will consider respective to the coronavirus. From the beginning, NCA has been advocating for the inclusion of 501(c)(7) clubs in the Paycheck Protection Program (PPP) and a robust employee retention tax credit (ERTC). The last two relief measures contained provisions addressing both priorities and NCA’s advocacy efforts yielded results. The omnibus appropriations bill enhanced the ERTC to 70% of qualified wages up to $10,000 per quarter through June 2021 and the American Rescue Plan extended through the end of 2021. The ERTC has been a valuable tool for many clubs around the country to manage cash flow and employee retention during the pandemic.
The American Rescue Plan allowed nearly all 501(c) entities, including 501(c)(7) clubs, nominally eligible for the PPP, but Small Business Administration (SBA) regulations restricting its programs from being utilized by private clubs that restrict membership for reasons other than capacity has created a significant amount of concern and confusion. Because each individual club’s practices are unique, NCA strongly advises clubs to consult with their attorneys and auditors to determine whether the PPP is a viable option. The importance of advocacy for private club interests was clearly demonstrated during the pandemic and I thank all who took the time to reach out to their representatives and senators to show support for these programs.
Looking ahead, I expect much of the remainder of 2021 to be focused on infrastructure and corporate tax policy. President Biden has laid out an infrastructure proposal totaling $2.25 trillion that would increase the corporate tax rate from 21% to 28% and increase individual income tax rates for households earning more the $400,000. As things currently stand, the proposal is garnering little if any support among Republicans and has raised concerns among several moderate Democrats. While the headlines seem to center on the disagreement over raising taxes, roughly half of the $2.25 trillion package is directed to programs that could only tangentially be considered infrastructure using even the most expansive definition of the term.
Again, I’d like to thank the NCA membership and other clubs around the country for your support of NCA’s efforts over the past year. I believe we showed a unity in purpose, which both raised awareness of the issues clubs face every day and yielded tangible results for clubs around the country.
Joe Trauger is NCA Vice President of Government Relations. He can be reached at [email protected].