Eversheds Sutherland Tax Reform Law Blog
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Cohn Calls for Sub-23% Corporate Tax Rate

White House economic advisor Gary Cohn stated that the US must reduce the tax rate for corporations and pass-through entities below 23%.  He indicated such a rate is necessary to encourage domestic corporations to keep their profits in the US by competing with corporate tax rates offered by most member countries of the Organisation for Economic Co-operation and Development (OECD). ...

Meadows Cites Thanksgiving Deadline for Tax Reform

House Freedom Caucus Chairman Mark Meadows, speaking at an Americans for Prosperity event, stated that “if [the tax reform bill] doesn’t get to the president’s desk by Thanksgiving… it isn’t going to happen.”  He explained that the timing is imperative in order to retroactively apply tax reform benefits to 2017 and to avoid the legislative slowdown often associated with midterm...

Abandonment of Border Adjustment Tax may lead to Shallower, Shorter Tax Cuts

The GOP’s decision to abandon the controversial border adjustment tax (BAT) increases the chances that ensuing tax cuts will be both temporary and shallower than envisioned.  Without the BAT’s estimated $1 Trillion in revenue, and with no other plan to raise significant funds, analysts estimate the lowest possible revenue-neutral rate for corporate taxes is about 27%, significantly...

Joint Statement on Tax Reform Issued; BAT Abandoned

Today, House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-TX) issued a joint statement on tax reform that sets out a broad framework for moving forward on tax reform. Most notably,...

GOP to Release Tax Reform Framework

The top Republican tax negotiators are expected to unveil a broad set of agreed tax reform principles prior to the Congressional recess.  The anticipated framework is the result of ongoing deliberations between the “big six”:  Speaker of the House Paul Ryan, House Ways and Means Committee chairman Kevin Brady, Senate majority leader Mitch McConnell, Senate Finance Committee chairman...

Republicans Close to a Unified Tax Reform Framework

House Speaker Paul Ryan, addressing an audience at the New Balance shoe factory in Massachusetts, stated that White House and Congressional leaders are nearing agreement on a tax reform framework.  Speaker Ryan suggested that lowering the current corporate tax rate of 35 percent to a 20 percent rate, through the closing of loopholes and special interest deductions, is a realistic...

White House Reconsidering Corporate Tax Rate Goal

The Trump Administration, according to White House officials and advisors, is considering a corporate tax rate of 20 percent to 25 percent.  While this estimate is higher than the 15 percent rate set forth in the Administration’s one-page tax proposal issued in April, one senior administration official explained that the April figure was a starting point for negotiations, with the...

Strategists Predict Regardless of Healthcare Reform’s Outcome, Tax Reform will Happen

Political strategists predict a tax reform bill will be signed into law next year, regardless of the outcome of efforts to enact a healthcare bill.  Their expectations are for smaller corporate and individual tax cuts than initially hoped, with a new corporate tax rate around 23 percent and individual cuts focused on the lower and middle class taxpayers.  However, tax reform efforts...

Hatch States Trump Conceding 15 Percent Corporate Tax Rate

Senator Orrin Hatch, Chairman of the Senate Finance Committee, stated that President Trump is likely retreating from his proposed goal of a 15 percent corporate tax rate.  Sen. Hatch, along with other congressional leaders, has participated in several recent meetings with White House officials in an attempt to reach a consensus on a tax reform bill.  He suggested a corporate tax rate...