use Speaker Paul Ryan, R-Wis., promised last week that House Republicans would produce an outline for comprehensive tax reform by June.
Ryan has charged House Ways and Means Chair Kevin Brady, R-Texas, with leading a tax reform task force meant to deliver recommendations this year. Brady echoed Ryan’s comments last week, telling reporters that Republicans are on track to release a reform blueprint by June.
There is little chance of enacting reform this year, but Brady and Ryan hope a tax reform outline could be picked up by major Republican candidates and become a plank in the party’s economic platform for the November elections. A June release would provide plenty of lead time before the Republican National Convention on July 18.
Meanwhile, House Republican plans to produce a full international tax reform plan appeared to slow again. Brady deputized House Ways and Means Committee Member Charles W. Boustany Jr., R-La., to lead the effort because of Boustany’s “innovation box” proposal last year. Boustany has recently softened his promises to deliver a draft international bill this year, and Brady is now refusing to pledge any specific time frame.
Senate Finance Committee Chair Orrin Hatch, R-Utah, is still waiting on a score from the Joint Committee on Taxation (JCT) before he releases his big tax reform proposal of the year on corporate integration. Hatch is expected to propose a deduction at the corporate level for paying dividends, paired with a new nonrefundable 35% withholding tax on dividends and interest. Hatch has said he wants the proposal to be revenue neutral on a traditional “static” basis, but is also asking the JCT to produce a “dynamic” estimate that includes the benefits of any macroeconomic changes. Hatch said he expects a JCT score in late May for a possible June release.
For more information, please contact Mel Schwarz or Dustin Stamper in the Washington National Tax Office.
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.