Eversheds Sutherland Tax Reform Law Blog
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Comey’s Dismissal May Impede Reform

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Tax Reform in 2019?

Wall Street analysts are generally in agreement that the House of Representatives’ passage of the American Health Care Act will delay tax reform. Predictions on the tax legislation timeline run the gamut, from the second half of 2017, into early 2018, or even 2019 depending on reform progress as the midterm elections near. Tax Reform Could Be Pushed to 2019 as GOP Focuses on Health Care
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Chairman of Senate Finance Committee States that Trump Administration is Against Border Adjustment Tax

The Chairman of the Senate Finance Committee, Orrin Hatch, believes after meeting with Trump administration officials, that the Trump administration is against the House Republican’s proposed border adjustment tax. Treasury Secretary Steven Mnuchin met with Republican Senate Finance Committee on May 9 to discuss tax reform. Senator Hatch also believes that the border adjustment tax will be “tough to pass” and unlikely to even move out of the Senate Finance Committee. Read more: U.S. Senate finance panel unlikely to support import tax:...
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House Republicans Divided Over Means to Pay for Tax Reform

House Republican leadership is committed to a tax reform plan that does not add to the deficit, paying for tax cuts with a Border Adjustment Tax and the removal of deductions.  Other members of the House majority support lower rates regardless of the immediate effect, arguing that resultant long-term economic growth will outweigh short-term costs. House Republicans Struggle with Cost of Tax...
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Rep. Brady Declares Border Adjustability Still a Priority After Release of Trump’s Tax Proposal

Representative Kevin Brady stated in an interview with WND/Radio America that despite the Trump administration not mentioning the border adjustment tax in its tax reform proposal released two weeks ago, border adjustability was “still a priority.” The chairman of the House Ways and Means Committee characterized the tax as necessary since American “competitors,” including China, Japan and Europe “all border adjust their tax.” Listen to the full interview here: WND Radio. Very exciting’ – Trump goes ‘bold’ on tax...
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Congressional Research Service Report on Blueprint

On April 25, 2017, the Congressional Research Service released a report that examines the potential economic impact of the House Republicans’ Blueprint for tax reform. The report addresses considerations related to economic efficiency and growth, distributional issues, revenue effects, and administrative issues, as well as noting that the proposal is likely to violate WTO rules. The report can be found on our Resources tab or at the following link: The “Better Way” House Tax Plan: An Economic...
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Mnuchin Predicts Three Percent Economic Growth

Secretary of the Treasury Steven Mnuchin states that tax reform and regulatory relief will help realize an economic growth rate of three percent within two years.  Despite concerns over funding for the Whitehouse tax reform plan, Mnuchin sees several ways to offset lost revenue and is hopeful for bi-partisan support as he continues to work with congressional leadership. Read more at: Mnuchin sees U.S. growth reaching 3 percent in time, tax cuts to...
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Trump’s Tax Plan Causes Divisions Within the Republican Party

Following a two-day tax policy retreat, Peter Roskam, Chairman of the House Ways and Means Subcommittee on Taxation, indicated that the committee is still committed to writing tax reform legislation that is revenue neutral and therefore can be permanent under the Senate’s budget reconciliation rules. That contrasts with Trump’s tax plan, which is projected to increase the federal deficit in the short term, and therefore would be required to sunset after ten years unless a number of Senate Democrats voted to pass it. Read more at: The Looming Clash Between Trump and Republicans on...
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Border Adjustment Tax Unlikely to be Part of Reform Effort According to Top Senate Republican

Senator John Cornyn, the Senate Majority Whip, stated yesterday that the border adjustment tax, proposed by House Republicans, was likely dead.  While the Trump administration’s guidelines regarding tax reform advocated for a switch to a territorial system, they did not specifically endorse a border adjustment mechanism. According to Senator Cornyn, enough Republican senators have expressed skepticism that its passage would be unlikely. Read more at: Senate’s No. 2 Republican: Border tax ‘probably...
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Trump Administration Releases Tax Plan Outline

The Trump administration released an outline of their tax reform plan today, which sets out the key initiatives they will pursue. Their proposals include lowering the corporate tax rate to 15%, repealing the 3.8% Affordable Care Act tax, implementing a territorial tax system, and introducing a transition repatriation tax on “trillions of dollars held overseas.” Read more at: Cohn, Mnuchin unveil Trump tax plan for 3 brackets and cutting deductions:...
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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 week
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Former Trump Advisors Urge Piecemeal Approach to Tax Reform

Former Trump campaign advisors, Steve Forbes, Larry Kudlow, Arthur B. Laffer, and Stephen Moore, urged the Trump Administration and the Republican Party to not attempt to overhaul the entire tax code in one bill. Instead, they advocated first seeking to lower business rates, allow immediate expensing, impose a repatriation tax on overseas profits, and fund infrastructure projects. They also pushed for abandoning a revenue neutral bill as well as any border adjustment. Read more at: Why Are Republicans Making Tax Reform So...
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Ways and Means to Hold Tax Reform Hearings

The House Ways and Means Committee will conduct hearings on tax reform in the coming weeks, working toward the goal of passing tax reform by the end of the year. Rep. Peter Roskam (R-Ill.), Chairman of the Tax Policy Subcommittee, will select witnesses and draft the hearing topics, which will focus on elements of the House Republicans’ tax blueprint. Read more at: GOP chairman: Ways and Means to hold tax reform hearings soon
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Tax Reform Timeline in Doubt; Unlikely by August Says Sec. Mnuchin

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Border Adjustment Tax May Affect Discount Retailers’ Profit Margins

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