With all the talk of tax reform, what is likely to come of this in 2017? We’ll look at business tax proposals in this installment and personal tax proposals in the next installment.
For business taxpayers, the Trump plan proposes the following:
The other Republican plan, “A Better Way”, proposes the following:
There are a number of similarities between these plans. First, both call for substantial cuts in the tax rates on business income, whether corporate or non-corporate. Second, expensing of business investments. Third, limitations on the deductibility of interest expense. Fourth, some attempt to reduce the tax burden on off-shore corporate earnings currently untaxed in the United States. Lastly, elimination of some “special interest” deductions and credits.
Although there is a good amount of overlap between both proposals, it’s difficult to say what may happen next year. But with all parties interested in pushing tax reform, the areas of agreement above would logically seem to be the ones most likely to be moved forward.