On August 30, 2017, President Trump, in a speech delivered at a manufacturing company in Missouri, discussed the need for tax reform and broadly outlined his vision of an “America First” tax system. While no specifics were discussed, the President did reaffirm his desire for a 15% business/corporate tax rate. In addition, the President outlined four principles guiding his tax reform efforts:
In addition, on August 31, 2017, Treasury Secretary Mnuchin announced that the Trump Administration and congressional leaders plan to release a more detailed tax plan in September. Despite the extremely busy schedule filled with high-priority decisions to be made upon Congress’ return yesterday, this timing is probably realistic, given that the Administration’s economic advisors and congressional leaders have been meeting regularly to discuss options for months.
We look forward to having more detailed proposals to evaluate, and will be informing our client base of proposed changes as they occur. We believe this could be a tricky and potentially lengthy process. Once details emerge, we will effectively enter the second phase of tax reform: one that debates taking away tax benefits in order to fund rate reductions. Intense lobbying is already occurring in efforts to save many of the traditional deductions that could be on the chopping block. It’s going to be interesting, that’s for sure, and hopefully productive.