Trump Administration officials announce tax reform principles
Treasury Secretary Steven Mnuchin and White House National Economic Council (NEC) Director Gary Cohn unveiled last week the Trump Administration’s principles (the Principles) for tax reform that call for lowering business tax rates to 15 percent which will apply to both corporate and non-corporate entities. However there was no detail shared how this business tax rate will specifically apply to pass-through entities or if distributions will be taxed as well. Issued as a one-page document, the Principles also call for moving the US to a territorial tax system from the current worldwide tax system, and for enacting a one-time repatriation tax on the foreign earnings of US companies. Secretary Mnuchin stated that the specific rate for a repatriation tax would be the subject of negotiations with Congress.