November 9, 2017

Tax Reform

After campaign rhetoric, platforms, and frameworks on the topic, the House of Representatives has released actual legislation detailing what tax reform would look like.

In October, the Chamber supported the U.S. Chamber Principals for Tax Reform and expressed support for retaining the mortgage interest deduction, the new market tax credits, and the State and Local Tax deduction. The legislation is expected to be changed substantially but currently includes:

Personal Tax Reform

• Fewer Personal Income Tax Brackets
• Fewer Tax Deductions
• Increase in the Standard Deduction resulting in dramatically fewer itemizing households
• Increase in the Child Tax Credit and introduction of a Parent Tax Credit
• Repeal of the Alternative Minimum Tax
• Repeals the Estate Tax

Business Tax Reform

• Corporate Tax Rate Cut (From 35% to 20%)
• Effectively reduces “Pass-through” business tax rate (From 39.6% to 25%)
• Move to a “territorial” tax system eliminating U.S. tax on overseas profits of U.S. companies.