Legislative Update—Tax Reform: With Congress ready to start a five week recess, House Republican Leaders and the Trump Administration have released a “Joint Statement on Tax Reform” signed by House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch and House Ways and Means Committee Chairman Kevin Brady. To read a copy of the statement on tax policy click here.
The Trump Administration and House and Senate Republican Leaders have not agreed on specific legislative plans or proposals for reforming the federal tax code, but they have clearly signaled plans for the House Ways and Means Committee and Senate Finance Committee to schedule hearings on tax reform legislation in September. To read a statement on the House Republican plans for tax reform from Congressman Peter Roskam, R-Illinois, the Chairman of the House Ways and Means Subcommittee on Tax Policy click here.
Since the start of the year, NSSTA has scheduled meetings with all 40 Members on the House Ways and Means Committee. To read a copy of the “Structured Settlement Tax Rules” paper that has been shared with Members of Congress and key Congressional Staff click here.
The Trump Administration and Congressional Leaders are working together to produce a comprehensive tax reform legislative proposal. The Trump tax reform plan is expected to include a reduction in corporate and personal tax rates and a shift to a territorial tax system—that would require U.S, based multinationals to pay U.S. tax only on income they earn in the U.S. The plan would also eliminate certain tax brackets, cut the estate tax, eliminate the alternative minimum tax, reduce taxes on capitol gains and eliminate the deduction people take on the state and local taxes paid. Plan B: In the event comprehensive tax reform is stalled in Congress in the Fall, the Trump Administration has floated a proposal to adopt a short-term tax cut which would reduce the corporate tax rate from 35% to 15% for ten years, double the standard deduction and allow corporations to bring money back to the U.S. from overseas without a significant tax penalty.