The Republican-led House of Representatives proposed groundbreaking reforms in its June 2016 “Blueprint”. Their initiatives gained unexpected momentum with Donald Trump’s victory. With Republicans now in control of the legislative process, a heightened desire for reform, and promises made on the campaign trail, significant changes seem imminent.
The Blueprint’s concepts are currently being debated and re-worked into a bill that will serve as the framework for negotiations in 2017.
As part of our U.S. Transition Series, this breakfast event will discuss and explain certain key considerations:
That tax rates may decrease and capital expenditures may become currently deductible is welcome news. But, eliminated deductions (e.g. interest) could result in higher taxes for some.
The border adjustment cash flow tax mechanism would change the very nature of the income tax, benefitting taxpayers that export from the U.S., to the detriment of those who import goods or services into the U.S.
The shift from a worldwide tax system to a territorial based regime for U.S. corporations would include a transition tax “toll charge” on offshore earnings of its non-U.S. subsidiaries, which would lead to immediate taxation of such earnings.
Non Members: Free