By Carol Kulish, Director, Federal Legislative & Regulatory Services, Washington National Tax, KPMG LLP
Mar 03, 2017
This past week saw no significant legislative movement on tax reform. But we did witness a ramp up of lobbying efforts both for and against the House Blueprint’s proposed border adjustable tax.
Meanwhile, President Trump, in last week’s address to a joint session of Congress, promised “massive” tax relief for the middle class and “historic” tax reform that will “reduce the tax rate on our companies.” He also emphasized the need to “create a level playing field for American companies and workers.” But the President, notably, didn’t provide details regarding his administration’s tax reform proposal or when it might be released.
So, where does that leave us? Pretty much in the same place that we’ve been in. No one knows yet whether tax reform ultimately will be enacted, or what final legislation would look like.
The political process can be a bit of a roller coaster—with ups and downs and twists and turns. The big difference is that a roller coaster ride typically ends up in the same place it started. This tax reform “ride” could end up in the same place (current law) or someplace very different. In the meantime, we’ll be listening and watching for clues from the Administration about the direction it wants to take tax reform, and how its relationship with the Republican-controlled Congress is evolving.
But at this point, the House Blueprint remains the proposal to watch.
This article represents the views of the authors only, and does not necessarily represent the views or professional advice of KPMG LLP.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.