Eversheds Sutherland Tax Reform Law Blog
content top

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 and the White House are on track to deliver tax reform with the “biggest, boldest growth” possible in 2017. Listen to the full interview here: GOP still focused on tax reform: Rep....
Continue Reading

Committee for a Responsible Federal Budget Opposes Long-Term Budgeting Abuse

In a June 22nd press release the Committee for a Responsible Federal Budget both acknowledged the beneficial aspects of long-term budgeting and denounced its irresponsible use to add to the country’s growing debt crisis.  Maya MacGuineas, President of the Committee, stated that moving to a 20-year budget window could provide needed guidance to lawmakers in drafting legislation and policies to support lasting fiscal stability.  However, MacGuineas warned that “[t]ax reform should be fully paid for, regardless of the budget window.  If the only purpose of moving to a 20-year budget window is...
Continue Reading

FedEx Delivers Alternative Tax Reform Plan

Under the guidance of chief executive officer Fred smith, FedEx Corp. has drafted an alternative tax reform plan in response to the quagmire on Capitol Hill.  The FedEx plan mirrors the House Blueprint in many ways, but explicitly omits a border adjustment tax (“BAT”) provision.  Instead, several revenue raisers are offered in lieu of the BAT, including a gasoline tax increase, a 10% minimum tax on passive offshore income, and an increase in employer Medicare taxes.  A FedEx spokesperson described the plan as “…just a way to show revenue can get there without border adjustability.” Read more...
Continue Reading

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 of 20 percent to 25 percent would turn the country around. Read more here:  Trump backing off 15 percent corporate tax rate, Hatch...
Continue Reading

Hatch Assigns Republican Committee Members to Specific Tax Reform Items

Senator Hatch, head of the Senate tax-writing panel, asked Republican members of the committee to provide input on specific tax areas: Senators Mike Enzi of Wyoming and Rob Portman of Ohio will focus on international business taxation; Senator Chuck Grassley of Iowa will focus on taxation of individuals; Senator John Thune of South Dakota will focus on business and estate taxes; Senators Dean Heller of Nevada and Bill Cassidy of Louisiana will focus on energy taxes; and Senator Pat Roberts of Kansas will focus on taxation of agriculture. Senator Hatch also declared he was committed to...
Continue Reading

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 the tax-policy subcommittee. Read more here:  GOP chairman: More tax-reform hearings coming in...
Continue Reading

A Step toward Bipartisan Tax Reform

Blue Dog Democrats, political centrist members of the House of Representatives, recently met with members of the White House economic team, including Treasury Secretary Steven Mnuchin, economic advisor Gary Cohn, and Director of Legislative Affairs Marc Short.  The Blue Dogs agree with certain tax reform goals of  President Trump, namely that legislation must (i) spur economic growth; (ii) reduce tax rates for the middle-class; (iii) broaden the revenue base; and (iv) lower corporate rates.  The 18 member group anticipates releasing its own set of tax reform principles, which will include...
Continue Reading

Tax Reform is Mnuchin’s ‘No. 1 Focus’

Treasury Secretary Steven Mnuchin stated that the Trump Administration and Congress are wholly dedicated to passing tax reform this year.  He foresees tax reform encompassing lower tax rates accompanied by cuts to special interest preferences and the implementation of a territorial tax system.  Secretary Mnuchin observed that slow corporate tax receipts are a byproduct of the tax reform initiative as companies await the outcome of reform efforts. Read more here: Mnuchin confident that ‘massive tax reform’ will get done this...
Continue Reading

White House, Congress Agree on Timeline; Ryan Calls for Permanent Reform

Speaking at the National Association of Manufacturers summit, House Speaker Paul Ryan confirmed that the White House and House Republicans concentrating on crafting tax reform have agreed to a timeline for a bill to be submitted. White House Chief Economic Advisor, Gary Cohn, has stated that they aim to introduce a bill to Congress in September. The Speaker reiterated his belief in a territorial system, stating that the controversial Border Adjustment Tax is not “dead” but acknowledging it needs to be revised. He also called for permanent, comprehensive reform for both individuals and...
Continue Reading

Ryan to Speak on Tax Reform

House Speaker Paul Ryan will address attendees at the National Association of Manufacturers (“NAM”) summit regarding tax reform on Tuesday, June 20, in Washington DC. It is anticipated that Ryan’s speech will describe what tax reform will look like as well as its benefits. The NAM summit, focusing on tax reform, regulatory reform, infrastructure and workforce development, will also feature talks from Vice President Pence, House Majority Leader Kevin McCarthy and Labor Secretary Alex Acosta. Read more here: Ryan to give ‘major’ tax reform...
Continue Reading

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, which permits passage with fewer than sixty votes. Finance Committee Chairman Orrin Hatch, Treasury Secretary Steven Mnuchin, House Freedom Caucus Chairman Mark Meadows, and Sen. Pat Toomey number among the...
Continue Reading

Senator Hatch Requests Comments from the Public on Tax Reform

Senate Finance Committee Chairman Orrin Hatch has released a letter asking industry groups and other stakeholders for recommendations on tax reform. Comments must be submitted to taxreform2017@finance.senate.gov by July 17. Read more:  GOP chairman seeks tax reform recommendations
Continue Reading

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. Rep. Meadows: Border adjustment tax is ‘stumbling block’ to tax...
Continue Reading

Automotive Industry Leaders Opposed to Border Adjustment Tax

Representatives in the automotive industry met with Gary Cohn, the White House National Economic Council Director, yesterday to discuss the House Republicans’ proposed border adjustment tax. President of the American International Automobile Dealers Association, Cody Lusk, expressed the industry’s dissatisfaction with the plan, which they believed would drive up the cost of every vehicle by a substantial amount. Likewise, the CEO of the Association of Global Automakers stated that it was “imperative” that the BAT not be part of any tax reform initiative.   Read more here: Auto industry...
Continue Reading

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 is now. Read more:  Brady’s Border Tax Phase-In Not Converting Senate Skeptics
Continue Reading