ML Strategies is pleased to share with you our latest report on tax reform, below. Tax reform continues to be a top priority for congressional Republicans and the White House, although the specifics of how comprehensive reform is achieved, and the timing of legislation, is still unclear, although the general view is that we will see something by late summer or early autumn.
The only tax reform proposal thus far is the House GOP blueprint. Most debate on that proposal has centered on the proposed border adjustment tax (BAT) which has met with resistance in the Senate. While revenue measures, such as tax reform, must originate in the House, Senate Majority Leader McConnell has said he plans to also move a tax reform bill in the Senate through reconciliation, allowing passage with a simple majority and limiting the likelihood of a Democratic filibuster.
At this stage of the debate, all eyes are on the president. Whether he produces a specific proposal for tax reform or offers up a set of principles – and whether or not he supports, opposes, or stays quiet on the question of the BAT – will tell us what to expect from the House (i.e. will they produce a bill based on the blueprint or fall back to the old Camp proposal), and from the Senate where both Republicans and Democrats are mostly keeping their powder dry to see whether Speaker Ryan is successful in moving his proposal forward.
The President will deliver his first address to Congress on February 28th. We will likely know much more about what to expect on the tax issues discussed here after the president’s address.
As always, ML Strategies is available to discuss any questions.
The only tax reform proposal thus far is the House GOP blueprint. Most debate on that proposal has centered on the proposed border adjustment tax (BAT) which has met with resistance in the Senate. While revenue measures, such as tax reform, must originate in the House, Senate Majority Leader McConnell has said he plans to also move a tax reform bill in the Senate through reconciliation, allowing passage with a simple majority and limiting the likelihood of a Democratic filibuster.
At this stage of the debate, all eyes are on the president. Whether he produces a specific proposal for tax reform or offers up a set of principles – and whether or not he supports, opposes, or stays quiet on the question of the BAT – will tell us what to expect from the House (i.e. will they produce a bill based on the blueprint or fall back to the old Camp proposal), and from the Senate where both Republicans and Democrats are mostly keeping their powder dry to see whether Speaker Ryan is successful in moving his proposal forward.
The President will deliver his first address to Congress on February 28th. We will likely know much more about what to expect on the tax issues discussed here after the president’s address.
As always, ML Strategies is available to discuss any questions.
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