The GOP Readies Tax Reform Pitch
Posted on Sep 22, 2017
President Trump, learning from the administration’s failure to engage conservative groups during its attempt to repeal Obamacare, will host leaders from several conservative grass roots organizations on Monday, September 25, to rally political allies around his tax reform plan. On Wednesday, the House Republican Conference will conduct a half-day retreat focused on effectively presenting tax reform to constituents. The goal of the meeting is to prevent fracturing among the Republican Party by providing ample opportunity to discuss the framework for tax reform, ask questions and offer...
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Senators Corker and Toomey Reach Tentative Budget Resolution Deal
Posted on Sep 20, 2017
Bob Corker and Pat Toomey, GOP members of the Senate Budget Committee, have reached a tentative agreement on a budget resolution that would allow for tax cuts that would significantly increase the deficit as determined using static scoring. While the Senators did not specify the size of the potential deficit increase, Senator Ron Johnson indicated that he would support an amount of at least $1.5 trillion, up to $3 trillion, over a ten-year period. The budget resolution is of particular importance as it is a necessary step toward unlocking the reconciliation process through which...
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Hatch Touts Corporate Integration at Tax Reform Hearing
Posted on Sep 20, 2017
Senate Finance Committee Chairman Orrin Hatch, during his opening statement at the committee’s Hearing on Business Tax Reform on September 19, stated that he continues to support his corporate integration proposal, which would allow U.S. businesses to deduct shareholder dividend payments from their taxable income in order to resolve the perceived double taxation, at the corporate and shareholder levels, on corporate earnings. Chairman Hatch views corporate integration as a complement to, rather than a substitute for, corporate tax rate reduction. Senate Republican tax chief wants dividend...
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Mnuchin Discusses Tax Reform
Posted on Sep 15, 2017
Treasury Secretary Steven Mnuchin, during an interview on the Fox News Channel’s “Special Report,” indicated that tax reform would be revenue neutral under the Administration’s growth assumptions. In discussing specifics of the yet-to-be released tax reform plan, he stated that the estate tax would be eliminated, that there would be a one-time deemed repatriation tax for transition to a territorial system but would not be tied to infrastructure, and that investment incentives for businesses would be included in the package. Secretary Mnuchin expressed his commitment...
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Congressional Republicans Frustrated by Lack of Tax Reform Detail
Posted on Sep 14, 2017
With the vote for tax reform legislation looming, Congressional members of the GOP, including Freedom Caucus Chairman Mark Meadows, have expressed concern over the lack of clarity as to what the tax reform proposal is. Speaking anonymously, a member of the House Ways and Means Committee suggested that the lack of detail was either to prevent media leaks or because there is simply not enough agreement among the policymakers to warrant the release of a detailed plan. Negotiations over several important aspects of tax reform are ongoing, including the corporate tax rate, immediate expensing,...
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Tax Reform Outline to be Released Week of September 25
Posted on Sep 13, 2017
House Ways and Means Committee Chairman Kevin Brady announced that a tax reform framework that identifies the “consensus” core elements of tax reform will be released the week of September 25 when Congress returns from their break. Brady also confirmed that the objective is still to enact tax reform legislation this year and that the intention is to do so through budget reconciliation. Read more: Republican leaders say ‘consensus’ tax reform outline to be released week of Sept. 25
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Tax Reform Plan Not to Be Released Until After Senate Hearings
Posted on Sep 12, 2017
Senate Finance Committee Chairman Orrin Hatch, a member of the “Big Six” group of tax reform policymakers, stated that the Trump tax reform plan will not be released until after the Senate holds tax reform hearings, one of which is slated for this Thursday, September 14. As a result, the unveiling of the tax reform blueprint will likely not occur until the end of September, at the earliest. Lobbyists report that the Big Six are still undecided on basic elements of the tax reform plan, including whether or not it will add to the federal deficit, which has diminished hopes of passing tax...
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Business Tax Reform Hearing Announced by Senate Finance Committee
Posted on Sep 12, 2017
Senator Hatch, the Chairman of the Senate Finance Committee, announced a hearing on business tax reform to take place on Tuesday, September 19, 2017. Four executives from industry groups and think tanks will testify on policy options for reforming the taxation of U.S. businesses. The witnesses include: Scott A. Hodge, President, Tax Foundation; Donald B. Marron, Institute Fellow, Urban Institute & Urban-Brookings Tax Policy Center; Troy K. Lewis, CPA, CGMA, Tax Executive Committee Immediate Past Chair, American Institute of CPAs; and Jeffrey D. DeBoer, President and Chief Executive...
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Ryan Anticipates Release of Tax Reform Plan by Autumn
Posted on Sep 11, 2017
House Speaker Paul Ryan stated that Congressional tax writers are close to unveiling their template for tax reform and that he anticipates its release this fall, followed by the passage of legislation before the end of the year. Speaker Ryan also confirmed that the goal is to lower the corporate tax rate to the industrialized average of 22.5%, noting that President Trump’s goal of a 15% corporate rate is unrealistic. House Speaker Ryan expects tax plan this fall: NYT interview
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President Trump Advocates for Tax Reform
Posted on Sep 5, 2017
In a speech intended to rally support for tax reform, President Trump outlined his commitment to simplifying the tax code, lowering corporate and individual rates and instituting a repatriation tax. The president reiterated that the corporate rate would “ideally” be lowered to 15 percent and referenced lowering taxes to help the middle class “afford childcare and the cost of raising a family.” The speech was not intended to lay out detailed proposals but rather to drive support as the administration has indicated that Congress will draft the tax reform plan. Read more: Trump pitches tax...
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Heller Foresees Tax Reform Passage in December
Posted on Aug 25, 2017
Senator Dean Heller, a Republican member of the Senate Finance Committee, stated that the best case scenario for tax reform is legislation passing in late December of this year. He predicted that the tax reform bill will lower rates, apply retroactively, and will attempt to decrease some regulations. Senator Heller anticipates a half dozen tax reform hearings from his committee prior to final edits and foresees the House of Representatives moving on a bill in September, followed by the Senate in October. GOP Senator Predicts Tax Overhaul on Christmas Eve
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The ‘Big 6’ Are Making Progress on Tax Reform Framework
Posted on Aug 22, 2017
The White House and Congressional Republicans have reached broad agreement on several potential offsets to fund tax cuts, according to sources familiar with the negotiations. Present options include capping the mortgage interest deduction, eliminating the state and local tax deduction, and eliminating the interest deduction for businesses. Additionally, there is consensus among the decision makers, colloquially known as the “Big 6,” to include a mandatory deemed repatriation provision in any tax reform proposal. The resultant corporate tax rate would likely fall between 22-25 percent with...
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Ryan to Promote Tax Reform in the Pacific Northwest
Posted on Aug 21, 2017
After events in Ohio, Washington, DC and Massachusetts, Speaker of the House Paul Ryan will promote tax reform in the Pacific Northwest this week. He will address the benefits of reform, including lower taxes, less hassle, and a level playing field for all taxpayers, according to a spokesman for the Speaker, with the goal of getting Republicans back on track after President Trump’s controversial comments regarding the violence in Charlottesville, VA. Ryan heads West to pitch tax reform
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President Needs to Focus on Tax Reform after Bannon Departure
Posted on Aug 21, 2017
Sara Fagen, the White House political director under George W. Bush, stated that President Trump needs to focus his administration on producing a tax reform package in the wake of Steve Bannon’s departure. According to Fagen, who sees the Bannon exit as a positive, the President needs an accomplishment on his record, particularly in light of his response to the racially charged events in Charlottesville, VA. While some Congressional Republicans have shied away from the President in recent days, there is still broad support for tax reform. With Bannon gone, one issue could get the White...
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GOP Fears President’s Volatile Relationships Could Jeopardize Tax Reform
Posted on Aug 18, 2017
President Trump’s declining relationship with his party and the business community could endanger passage of a tax reform bill. House Ways and Means Committee Chairman Kevin Brady stated that tax reform, which he described as the “signature issue of this presidency,” can only succeed if the President “gets on board and stays on board.” In the wake of distracting events and the dissolution of a pair of the President’s corporate advisory groups, conservative organizations are spending millions on media campaigns to create momentum for tax reform. Congressional Republican leaders are hoping...
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