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Trump Announces Tax Cut Details Will Be Released Next Week

President Trump announced that his tax reform plan will be released next week. He promised a “massive tax cut” to businesses and individuals that could end up larger “than any tax cut ever.” He did not provide any insight into the contents of the plan. Read more at: Trump says he will release tax reform package next...

Tax Reform Timeline in Doubt; Unlikely by August Says Sec. Mnuchin

The Trump administration had previously stated that they wished to pass tax reform legislation by August of this year. However, Treasury Secretary Mnuchin has recently stated that the August deadline is too aggressive at this point and is not realistic. With legislative focus turning back to healthcare, it is unclear whether tax reform will be accomplished this year. Read more at: Tax...

Border Adjustment Tax May Affect Discount Retailers’ Profit Margins

Dollar Tree, and similar discount retailers, rely on imports from countries like China that manufacture inexpensive products and sell at low prices. If the House Republicans impose the border adjustment tax, and imports are taxed at 20 percent, such discount retailers may have to revise their business models in order to maintain their profit margins and continue to be profitable. Read...

The Fading Blueprint

U.S. House Speaker Paul Ryan’s tax reform blueprint is facing opposition within the Republican ranks. Both the Whitehouse and the Senate Republicans are preparing alternative plans, with the latter dusting off former House Ways and Means Committee Chairman Dave Camp’s proposed tax reform act as its foundation for new legislation. Read more at: U.S. Tax Reform Debate Moves Away From...

Tax Extenders Debate is Extended — EXPIRE Act Stalls in the Senate

– Sen. Ron Wyden’s (D.-Ore.) EXPIRE Act, which would have revived several expired tax provisions (see prior post here), has been stalled in the Senate.  Despite broad bipartisan support for the EXPIRE Act, an apparent disagreement over amendments is preventing a vote on final passage. Senate Republicans proposed a number of amendments to the bill, including the repeal of the...

Camp Reform Bill Sets the Bar for Future Reform Proposals, Say Experts

Conventional wisdom states that Representative Dave Camp’s (R-Mich.) comprehensive tax reform proposal has zero chance of passing in the current Congress.  Nevertheless, experts are praising the Camp proposal for its specificity, transparency, and thoroughness.  In a recent blog post, TaxVox editor and Urban Institute fellow Howard Gleckman and Urban-Brookings Tax Policy Center...

OECD’s BEPS Hybrid Draft Tells Rest of Europe to be More Like Germany

The OECD’s Base Erosion and Profit Shifting (BEPS) project continues apace, and information on the direction of the project is getting out.  On February 10, Tax Analysts’ Lee Sheppard reported on a leaked draft report dealing with hybrid entities (entities which are treated as separate entities in one jurisdiction but are disregarded as separate entities or treated as pass-through...

Republican Party Platform: Ditch FATCA

Apparently, the reporting requirements of foreign financial institutions have now become partisan red meat. On Friday, the Republican National Committee made repeal of the Foreign Account Tax Compliance Act (FATCA) part of its party platform. A resolution passed by voice vote at the RNC’s annual winter meeting in Washington, D.C., establishing a party position on the anti-tax-evasion...

To Extend or Not to Extend: Hatch Reiterates Need for Individual Scrutiny of Tax Breaks

The end of 2013 saw the expiration of more than 50 temporary tax cuts, including the research and development credit, various renewable energy credits, provisions allowing accelerated depreciation of certain business assets, and certain international tax provisions.  In past years Congress has allowed these provisions to lapse, only to retroactively renew them for limited periods...

Senator Baucus To Be Nominated to China Post; Future of Tax Reform in Doubt

Politico reports President Barack Obama is expected to nominate Senator Max Baucus (D-Mont.) as the next ambassador to China.  News of the expected nomination came on the same day Sen. Baucus released his fourth tax reform discussion draft, focused on modernizing and streamlining energy tax incentives.  While the nomination is not yet official, it is apparently a “done deal” according...

Baucus Releases Discussion Draft on Cost Recovery and Accounting Tax Reform

Senator Max Baucus (D-Mont.) released a new tax reform discussion draft on cost recovery and accounting rules, with the stated goal of a simpler, fairer system that promotes tax neutrality.  The draft proposals address the rules governing depreciation of tangible and intangible assets, as well as certain tax accounting rules and rules affecting small businesses.  Significant proposals...

Mixed Reaction to Baucus International Discussion Draft

Following the release of Senator Max Baucus’s (D-Mont.) discussion draft on international tax reform, reaction from members of Congress and the business community is mixed.  Sen. Baucus’s counterpart in the House, Representative Dave Camp (R-Mich.), quickly praised Baucus for “his continued commitment to advancing tax reform forward,” but did not comment on the substance of Baucus’s...

Bipartisan Bill Introduced to Limit Deductibility of Corporate Settlements

Senators Charles Grassley (R-Iowa) and Jack Reed (D-R.I.) introduced a bill this week to prevent companies from deducting the cost of settling government allegations of wrongdoing.  The proposed Government Settlement Transparency and Reform Act follows on the heels of similar legislation introduced in the House of Representatives last week, and would close a loophole that allows...

Tax Reform Advocates See Budget Conference as an Opportunity, But Skeptical About Short-Term Prospects

Businesses and other organizations advocating for an overhaul of the corporate tax code are pressing on with their reform agenda, despite growing pessimism over the prospect of Congress passing meaningful tax legislation this year. Key lawmakers charged with negotiating a budget deal have been vocal in tempering expectations that the budget deal will result in any “grand bargain” or...

Reform Roundup: Opinions on the Likelihood of Near-Term Reform Legislation

In the wake of Congress’ recent debt ceiling deal, several views have emerged regarding the likelihood of comprehensive tax reform legislation being introduced by the end of 2013, as has been targeted by chief tax writers Representative Dave Camp and Senator Max Baucus.  These views differ, but the overall consensus is less than optimistic: Bloomberg/BNA reports that most tax lobbyists...

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