If you have been reading our blogs, we have been chronicling the tax legislative process through the House Ways and Means Committee. (If not, you can click here to read the previous blogs in the process.) We have also been looking at the impact of FATCA.
These are of note because today, there will be live hearings looking at the tax filing season and the unintended consequences of FATCA.
Moving on to a more serious question, are the actions you, your staff, or your client take subject to the Federal Lobbying Disclosure Act (LDA), effective as of January 1, 2008 and revised as of January 31, 2017? This highly technical Act is a must read by all persons involved in contacting Members of Congress and/or their staff.
Members of Congress have many sources from which they can obtain critical information on the impact a proposed tax will have on taxpayers generally. But they value most the information they obtain from tax practitioners who deal with tax matters hourly and daily. So, take advantage of the opportunity to furnish the Members of Congress the vital and critical information they need and cannot obtain that information elsewhere. Please review the list of The Dos and The Do Nots.
This is the 3rd article in the TaxConnections Education Series on the Congressional Tax Legislative Process. This continues the legislative process education provided in previous articles (first article and second article), specifically on the TaxConnections Legislative Process that outlines the steps in the development of every tax proposal approved by the Congress.
For the information of our members, and per your request, I have reproduced a copy of a House Ways and Means Committee press release that outlines the proposal of the House Republicans in some detail in TaxConnections Tax Blogs. At this point in time, I don’t know how many Republican Members of Ways and Means and/or of the House will support that proposal until details of the President’s tax proposal is announced and studied.
Over the past few weeks, I’ve had numerous clients ask me about how they might be impacted by the border adjustment tax. In fact, so many have expressed concern that they’re already seeking advice on how to avoid being impacted, even though nothing has been enacted into law. For those of you whom are unfamiliar with the subject, the border adjustment tax is currently a proposal, not law. The idea is derived from the House Republican’s Ways and Means Committee tax reform blueprint, “A Better Way”.[i]
Last week, the House Ways and Means passed H.R. 4718 to make 50% bonus depreciation permanent (it expired after 12/31/13). This is in stark contrast to Congressman Camp’s tax reform proposal of February 2014 that calls for straight-line depreciation (rather than accelerated) and longer lives, as a way to pay for a 25% corporate tax rate. The Joint Committee on Taxation estimates the cost over 10 years is $263 billion (JCX-63-14). H.R. 4718 does not include any revenue offset.
It is unlikely that this bill will be passed by the Senate given the cost and that it is not revenue neutral. Even if revenue were found, I think more politicians would rather use the revenue from converting slowing down depreciation to lower the corporate and individual tax rates.* The lower rates would also benefit all businesses while more favorable Read More
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