November 1st Tax Reform Roundup
As Congress continues to work on details of tax reform, possible elements are released. The Republican reveal of the tax reform proposal has been delayed to tomorrow; the issue is how to pay for the proposed $5.5 trillion in tax cuts.
Each week until tax reform is final, we will provide you with a brief email outlining key elements being proposed and discussed.
Here are some of the possible features of tax reform still being hammered out:
- A five-year gradual phase-in for the corporate tax-rate cut with the rate reduced from its current 35 percent rate by three percentage points a year starting in 2018
- Keep the property tax deduction as part of a compromise on proposed elimination of the state and local tax (SALT) deduction
- Keep the estate tax, but double the thresholds at which it applies
- Reduce the limits of pretax contributions and raise the overall threshold of contributions American workers can make to 401(k) retirement plans. This has been bandied about, but House Ways & Means Chairman Kevin Brady says it would occur only if there was broad agreement by investment advisors that this would lead investors to save more.
- Possible tax on foreign earnings
New changes and proposals come out daily. If you would like to receive the latest updates in regards to tax reform, subscribe to our newsletter, Matters That Count / Tax Reform Roundup.
For questions, please contact Partner and Tax Practice Leader, Debbie Torrance.