Article written by:
Nicole Dulle, CPA
Tax Senior Manager
One of the biggest agenda items for President Trump is tax reform. At the end of July, it was announced that the border adjustment tax (BAT) was scrapped from the current tax reform plan. It was estimated that the BAT would bring in over $1 trillion in revenue over a 10-year period. The BAT would have taxed foreign goods being imported into the US in an effort to strengthen domestic production and was seen as one of the main offsets to reducing the corporate income tax rate. With this off the table, many are left wondering “what will tax reform look like?” There is a lot of speculation that tax cuts won’t be as deep as initially proposed or, perhaps, only short-lived. Without this major source of revenue will a massive overhaul even be possible?
It seems we have more questions than answers at this point – and the ‘will they, won’t they’ is an environment taxpayers are becoming all too familiar with. The American taxpayers could be seeing yet another year where tax legislation isn’t enacted until late in the year, which gives them little time to react and make any significant tax planning moves.
GBQ will continue to monitor progress made on the tax reform front and share that information as it becomes available.