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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...

Brady Touts “Big, Bold, Permanent Tax Reform”

House Ways and Means Committee Chairman Kevin Brady, during an interview with Stuart Varney of the Fox Business Network, identified four of the most important aspects of tax reform as: (1) cutting the corporate tax rate; (2) cutting the small business tax rate; (3) cutting the individual tax rate; and (4) full and unlimited expensing. Brady ensured that, despite time concerns, Congress...

Brady Announces Two Tax-Reform Hearings for July

House Ways and Means Committee Chairman Kevin Brady has announced that the committee will hold two tax reform hearings in July.  The first hearing will focus on the benefits of tax reform for small businesses, while the second will concentrate on the benefits for families and individuals.  No decision has been made as to whether the hearings will occur before the full committee or only...

Support Grows for Extending the Ten Year Tax Cut Budget Period

With tax reform progress floundering amid GOP rifts and political partisanship, Republican leaders are considering changing Senate budget rules to increase the period before required sunset for tax cuts that add to the federal deficit. Current rules limit the duration of tax cuts that add to the federal deficit to ten years if they are passed under the budget reconciliation process,...

Freedom Caucus Chairman Opposes Border Adjustment Tax, Says Tax Reform must Occur by September

Mark Meadows, Chairman of the House Freedom Caucus, stated that the border adjustment tax is the main impediment to tax reform, with 70-80 Representatives opposed to the provision. Rep. Meadows indicated that legislation must be enacted by September if tax reform is to occur and meet retroactive requirements, suggesting he believes tax reform effective for 2017 is still a possibility....

Border Tax Adjustment Phase-In Not Popular with Senate Republicans

House Ways and Means Committee Chairman Kevin Brady’s proposal to introduce the border adjustment tax (BAT) with a five-year phase-in has not been well received by Senate Republicans. Senate Finance Committee Chairman Orrin Hatch does not think there is enough time for the phase-in and Senator John Thune believes that a five-year phase-in will not make the BAT any more popular than it...

Rep. Brady Proposes 5-Year Phase-in for Border Adjustment Tax

Chairman of the House Ways & Means Committee, Rep. Kevin Brady, proposed a five-year transition to switch to a border-adjusted regime. Companies would be able to deduct most of their imported costs initially with a slow phase out of the deductions. The phase-in would be applied equally to the treatment of exports, which would gradually become fully exempt. Read more here:  Brady...

House Republicans Remain Divided Over Border Adjustment Tax

With the GOP still looking for its first major legislative accomplishment under the Trump Administration, Conservative members of the House are calling for party leadership to abandon the proposed border adjustment tax in order to facilitate progress on tax cuts. Tim Phillips, president of the Koch-brothers backed “Americans for Prosperity” contends that House Ways and Means Committee...

White House Version of the Tax Bill Reportedly to Be Ready by Labor Day

Faced with growing Republican discontent over the Trump Administration’s lack of definitive tax legislation, White House economic advisor Gary Cohn projects that Congress will receive President Trump’s detailed tax proposal by the time Lawmakers return from the August recess. If delivered, the proposal would have to share attention with Congressional efforts to raise the debt limit and...

Key Open Topics for Tax Reform

Chairman of the House Ways and Means Committee Kevin Brady and Speaker Paul Ryan concur that the White House and Republican members of Congress are eighty percent in agreement on tax reform legislation.  Issues constituting the remaining twenty percent include: 1) the permanence of tax reform, 2) individual and corporate tax rates, 3) the border adjustment tax, 4) full expensing or...

Brady Suggests Reports of Border Adjustment Tax’s Death Are Greatly Exaggerated

House Ways and Means Chairman Kevin Brady, acknowledging the dissension surrounding the border adjustment tax, remains stalwart that it is a “critical” component of the House GOP’s tax reform agenda. Chairman Brady reports working with the White House and the Senate to resolve opposition to the plan, projected to raise nearly a trillion dollars in revenue to offset a...

Ways and Means Committee Hears Testimony on Border Adjustment Tax

On Tuesday, May 23rd, the House Ways and Means Committee, led by Chairman Kevin Brady, held its second hearing on tax reform, entitled “Increasing U.S. Competitiveness and Preventing American Jobs from Moving Overseas.”  The hearing concentrated on the practicality and effects of the proposed border adjustment tax on the economy.  Chairman Brady was critical of the ‘Made in America’...

House Ways and Means Committee Holds First Hearing on Tax Reform.

Led by Chairman Brady, the House Ways and Means Committee held its first hearing on tax reform Thursday. The hearing and witnesses focused mainly on provisions advanced by House Republicans in their Blueprint, including immediate expensing and the impact of a lower corporate tax rate on investment and manufacturing. The witnesses testifying before the Committee included: John J....

Despite a Bleak Outlook, Tax Reform Hearing on Border Adjustment Tax Announced

The House Committee on Ways and Means will hold a hearing on May 23 at 10:00 a.m., entitled “Increasing U.S. Competitiveness and Preventing American Jobs from Moving Overseas,” focusing on the impact of a border adjustment tax and other policies on job, investment and economic growth in the United States. While Senate Majority Leader Mitch McConnell does not foresee legislation...

Congressional Republicans Undecided on Border Adjustment Tax

Despite support from Ways and Means Committee Chairman Kevin Brady, Paul Ryan’s proposed border adjustment tax appears to lack support among rank and file House Republicans, raising serious questions as to the likelihood of passage.  Even if the bill manages to garner the necessary votes to pass the House, Sen. Lindsey Graham has said that the legislation...

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