White House Unveils Outline for Tax Reform
April 28, 2017

The White House has released its “2017 Tax Reform for Economic Growth and American Jobs.” The one-page outline offers a list of proposals aimed at lowering (and simplifying) the tax code in order to rev up the country’s economic engine. Among its stated goals is “lowering the business tax rate from one of the highest in the world to one of the lowest.”

Specifically, the proposal aims to simplify brackets and lower tax rates, synchronize corporate and small business rates, improve American competitiveness with a territorial tax system and repeal a number of unpopular (and popular) portions of the tax code.

Here are the specifics of the proposal. How many of these items will be enacted, and whether they will be enacted all or in part is up to Congress.

Proposed Tax Relief for Individuals

  • Reduce the seven tax brackets to three brackets of 10%, 25% and 35%
  • Double the standard deduction
  • Provide tax relief for families with child and dependent care expenses

Proposed Simplification for Individuals

  • Eliminate targeted tax breaks that mainly benefit the wealthiest taxpayers
  • Protect the home ownership and charitable gift tax deductions
  • Repeal the Alternative Minimum Tax
  • Repeal the estate tax

In addition, the proposal aims to repeal the 3.8% tax on net investment income

Proposed Tax Relief for Business

  • Set a 15% business tax rate
  • Create a territorial tax system to level the playing field for American companies
  • Levy a one-time tax on trillions of dollars held overseas
  • Eliminate tax breaks for special interests

During May, the White House will conduct listening sessions with business owners on the proposals, as well as work with both the House and Senate on details of the plan.

For more information on how these proposals may impact you, please contact your tax advisor.

You might also like

Act Now to Reduce Your Business’s 2022 Tax Bill

Act Now to Reduce Your Business’s 2022 Tax Bill

It’s been a tumultuous year for many businesses, and the current economic climate promises more uncertainty for the short term, if not longer. Regardless of how your company has fared so far in 2022, there’s still time to make moves that may reduce your federal tax...

read more
Five Steps to Take Now to Cut Your 2022 Tax Liability

Five Steps to Take Now to Cut Your 2022 Tax Liability

It has been quite a year — high inflation, rising interest rates and a bear stock market. While there’s not a lot you can do about any of these financial factors, you may have some control over how your federal tax bill for the year turns out. Here are some strategies...

read more