GOP Considers Hybrid Approach to Tax Reform
Posted on Aug 14, 2017 in News
Congressional tax committee members and the White House are discussing tax reform that combines permanent revisions to the tax code with temporary rate cuts for individuals and businesses. The proposal is a potential solution for Republicans if the party opts to utilize the reconciliation process, which limits the life of tax cuts adding 10 years to the federal deficit. (The effect of...
Abandonment of Border Adjustment Tax may lead to Shallower, Shorter Tax Cuts
Posted on Jul 31, 2017 in News
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...
House Ways and Means Committee Democrats Critical of Republicans’ Joint Statement on Tax Reform
Posted on Jul 28, 2017 in News
In response to Congressional Republicans’ and the Trump Administration’s unveiling of their joint statement on taxes, several Democratic members of the House Ways and Means Committee issued condemnatory press releases: Ranking Member Richard Neal expressed his disappointment over the Republicans’ decision to exclude Democrats from the tax reform process, stating that partisan tax...
Joint Statement on Tax Reform Issued; BAT Abandoned
Posted on Jul 27, 2017 in Uncategorized
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
Posted on Jul 27, 2017 in News
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...
Opposition to Border Adjustment Tax Continues
Posted on Jul 26, 2017 in News
Critics, including the House Freedom Caucus and the Koch-brothers-backed Freedom Partners, as well as the retail, oil refining, and auto industry sectors, remain resolute in their position that tax reform legislation should not include a border adjustment tax (BAT). House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady remain the BAT’s strongest supporters, but apprehension...
Republicans Close to a Unified Tax Reform Framework
Posted on Jul 21, 2017 in News
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...
Global Minimum Tax Under Consideration for Tax Reform
Posted on Jul 12, 2017 in News
The Senate is reportedly exploring the possibility of a global minimum tax, an idea which has historically had some bipartisan support. One approach being considered is a version of the provision that was included in the 2014 tax reform legislation proposed by Dave Camp, the former chairman of the House Ways and Means Committee. That proposal, which generally had the effect of a...
FedEx Delivers Alternative Tax Reform Plan
Posted on Jun 28, 2017 in News
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%...
White House, Congress Agree on Timeline; Ryan Calls for Permanent Reform
Posted on Jun 21, 2017 in News
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...
Automotive Industry Leaders Opposed to Border Adjustment Tax
Posted on Jun 15, 2017 in International Tax, News
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...
Border Tax Adjustment Phase-In Not Popular with Senate Republicans
Posted on Jun 14, 2017 in News
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
Posted on Jun 13, 2017 in Uncategorized
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
Posted on Jun 12, 2017 in News
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...
Heritage Foundation Supports the House Blueprint Without a Border Adjustment Tax
Posted on Jun 9, 2017 in News
The conservative Heritage Foundation contends that the House tax reform Blueprint plan will successfully promote job creation and economic growth through lower corporate tax rates; immediate capital expensing; and the removal of special credits, deductions, and exemptions, without need for the controversial Border Adjustment Tax (“BAT”). The Heritage Foundation predicts the BAT would...