On September 27, 2017, the Administration and Congressional leaders issued a nine-page outline on tax reform titled a “Unified Framework for Fixing Our Broken Tax Code.” The outline does not provide much more detail than previous ones from the Administration and Congress, and leaves much still to be worked out in the tax-writing committees of Congress; however, it does provide the areas in which the parties have so far reached agreement.
What: For individuals, there is increased agreement on a number of rates and amounts for proposed tax cuts. However, there is still little detail on how these tax cuts will be paid for and not enough detail to determine the impact of the proposed changes on particular taxpayers without making a number of assumptions.
Similarly for businesses, there is increased agreement on a new top corporate tax rate, a top business tax rate, a territorial tax system, and an unlimited expensing period. However, as to how these tax cuts are to be paid for, there are mostly only vague references and little specificity.
Why: The remaining months of 2017 are likely to be taken up with the Congressional tax-writing committees trying to flesh out this outline into tax reform legislation that can actually pass Congress.
Who: Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax analyst at Wolters Kluwer Tax and Accounting, is available to discuss some of the following issues in more detail:
- What are the key components of the latest tax reform outline
- What is new in the latest outline
- What does the outline still leave undecided
- How will the proposed tax cuts be funded
- What is the possible timing of tax reform legislation
- What proposed changes might be retroactive to 2017
Click here to download Wolters Kluwer Tax and Accounting’s latest tax briefing, “GOP’s 2017 Tax Reform Framework.”
Contact: Members of the media interested in arranging an interview with a Wolters Kluwer tax expert may contact:
| LAURA GINGISS | BRENDA AU | ||||||
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