DLA Piper is pleased to offer materials from our January 10 discussion on the state of play concerning tax reform as comprehensive reform gets underway.
Our presentation reviewed the technical aspects of what House Ways and Means Committee Chairman Kevin Brady (R-TX) is expected to propose, with a focus on the anticipated border adjustability system and potential alternative approaches to tax reform, as well as the political dynamic that will play out over the next few months. We also discussed how stakeholders can best make their views and concerns known to key policymakers as the tax reform debate gets underway.
Businesses face some important questions in tax reform:
- Are border adjustments the price that they must pay to achieve a reduction in rates and a territorial system?
- If the border adjustment approach is abandoned, will tax reform go forward, and in what form?
- What tax expenditures are likely to be eliminated in order to offset rate cuts - how may stakeholders evaluate the potential impact of losing important tax expenditures, and what can be done to protect certain tax expenditures from elimination?
- Are the very low business rates proposed by the President-elect (15%) or the Brady plan (20%) achievable? If not, what compromises will likely be made if the final rates are higher?
- What type, if any, of grandfather relief can stakeholders achieve to protect current structures and transactions, and is it likely that major changes to the tax system will be phased in and for how long?
- Melissa Gierach, Senior Advisor, DLA Piper – Washington DC
- Evan Migdail, Partner, DLA Piper – Washington DC
- Maruti Narayan, Partner, DLA Piper – New York
- Steven Philips, Partner, DLA Piper – Washington DC