Eversheds Sutherland Tax Reform Law Blog
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Aspects for GOP’s Tax Overhaul Plan Leak

The Republican tax reform blueprint, due to be released this week, will propose a corporate tax rate of 20 percent, according to three insiders with knowledge of the plan, speaking on the condition of anonymity.  In addition, the plan will call for full-expensing, allowing companies to immediately and fully deduct capital expenses.   However, the full expensing benefit will be temporary, terminating after five years due to the cost.  While the provision could result in an initial growth in business investment, its relatively short duration may hamper long-term planning. GOP eyes corporate...
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The GOP Readies Tax Reform Pitch

President Trump, learning from the administration’s failure to engage conservative groups during its attempt to repeal Obamacare, will host leaders from several conservative grass roots organizations on Monday, September 25, to rally political allies around his tax reform plan.  On Wednesday, the House Republican Conference will conduct a half-day retreat focused on effectively presenting tax reform to constituents.  The goal of the meeting is to prevent fracturing among the Republican Party by providing ample opportunity to discuss the framework for tax reform, ask questions and offer...
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Senators Corker and Toomey Reach Tentative Budget Resolution Deal

Bob Corker and Pat Toomey, GOP members of the Senate Budget Committee, have reached a tentative agreement on a budget resolution that would allow for tax cuts that would significantly increase the deficit as determined using static scoring.  While the Senators did not specify the size of the potential deficit increase, Senator Ron Johnson indicated that he would support an amount of at least $1.5 trillion, up to $3 trillion, over a ten-year period.  The budget resolution is of particular importance as it is a necessary step toward unlocking the reconciliation process through which...
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Hatch Touts Corporate Integration at Tax Reform Hearing

Senate Finance Committee Chairman Orrin Hatch, during his opening statement at the committee’s Hearing on Business Tax Reform on September 19, stated that he continues to support his corporate integration proposal, which would allow U.S. businesses to deduct shareholder dividend payments from their taxable income in order to resolve the perceived double taxation, at the corporate and shareholder levels, on corporate earnings.  Chairman Hatch views corporate integration as a complement to, rather than a substitute for, corporate tax rate reduction. Senate Republican tax chief wants dividend...
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Mnuchin Discusses Tax Reform

Treasury Secretary Steven Mnuchin, during an interview on the Fox News Channel’s “Special Report,” indicated that tax reform would be revenue neutral under the Administration’s growth assumptions.  In discussing specifics of the yet-to-be released tax reform plan, he stated that the estate tax would be eliminated, that there would be a one-time deemed repatriation tax for transition to a territorial system but would not be tied to infrastructure, and that investment incentives for businesses would be included in the package.  Secretary Mnuchin expressed his commitment...
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Congressional Republicans Frustrated by Lack of Tax Reform Detail

With the vote for tax reform legislation looming, Congressional members of the GOP, including Freedom Caucus Chairman Mark Meadows, have expressed concern over the lack of clarity as to what the tax reform proposal is.  Speaking anonymously, a member of the House Ways and Means Committee suggested that the lack of detail was either to prevent media leaks or because there is simply not enough agreement among the policymakers to warrant the release of a detailed plan.  Negotiations over several important aspects of tax reform are ongoing, including the corporate tax rate, immediate expensing,...
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