What you need to know about tax reform

Unified control of the White House and Congress provides Republicans the opportunity to set the legislative agenda, advance key priorities, and revisit the regulations promulgated by the outgoing Administration. The likely legislative and regulatory activity presents both opportunities and challenges for the business community.

Learn more: House Republican Blueprint: A destination based cash-flow tax

Read: Decision Time for tax reform: 2017 Tax Policy Outlook

Watch: Talking tax reform with Chairman Dave Camp

See: President Trump's tax plan

View: House Republican Blueprint goals

 

House Republican Blueprint: A destination based cash-flow tax

The increased potential for comprehensive tax reform in 2017 has put a spotlight on the House Republican Blueprint. This Tax Insight provides more detail on these business provisions and discusses the impact the Blueprint would have on US competitiveness, the potential market impact of border adjustability, and the change it would represent in the taxation of cross-border income.
 

Read more

The heart of the matter

The combination of a Republican president and Republican majorities in both the House and the Senate increases significantly the prospects for enactment of comprehensive tax reform, legislation to repeal (and eventually replace) the ACA, and other major legislation. One of the greatest challenges will be for President Trump and Republican Congressional leaders to decide which priorities to address first.
 

Read more

Talking tax reform

PwC’s Dave Camp, former House Ways & Means Committee Chairman, weighs in on potential tax reform plans. 

Click on the video to the left to watch his interview on CNBC.

In addition, Chairman Camp discusses the proposed border adjustment tax in a previous CNBC interview. Watch here.


President Trump's tax plan
 

Individuals
  • • Four brackets: 0%, 12%, 25%, and 33%
  • • Increase standard deduction to $15,000 for single filers / $30,000 joint returns
  • • Eliminate AMT
  • • Cap itemized deductions at $200,000 Married-Joint filers or $100,000 Single filers
  • • Repeal estate and gift taxes
Investment income
  • • Maximum 20% rate on capital gains, dividends, and interest
  • • Eliminate 3.8% net investment tax
Business
  • • 15% tax rate on C corporations
  • Pass-through businesses may elect 15% rate, with large pass-throughs subject to dividend tax on retained earnings (New)
  • • Eliminate most corporate tax expenditures except for the R&D credit
  • Firms engaged in US manufacturing may elect to expense capital investment; lose deductibility of interest expense (New)
  • • Tax carried interest as ordinary income
International
  • • End deferral of tax on foreign income/retain FTC?
  • • One-time 10% deemed repatriation

Contact us

Pam Olson
US Deputy Tax Leader & Washington National Tax Services Leader
Tel: +1 (202) 414 1401
Email

Rohit Kumar
Principal and Co-Leader, WNTS Tax Policy Services
Tel: +1 (202) 414 1421
Email

Follow us