- Details of comprehensive US tax reform announced
- November 9, 2017 | Authors: Fernando Gandioli; James R. Brockway; Eric Fischer; George McCormick
- Law Firms: Withers Bergman LLP - New Haven Office; Withers Khattarwong - Singapore Office; Withers LLP - Hong Kong Office; Withers Bergman LLP - New Haven Office
On Wednesday, top members of the Trump Administration and leaders of the U.S. Congress released a series of proposals which would dramatically change the U.S. federal tax code.
This framework of new tax policies will be taken up by Congress soon and, if passed, would transform not only how Americans pay their taxes but also affect international investors and businesses with ties to the United States.
If these policies are enacted:
• the U.S. federal income tax would be simplified by lowering tax rates and reducing deductions;
• American corporations and non-U.S. corporations operating in the United States would likely see tax rates fall from 35% down to 20%; and
• wealthy Americans and foreign investors holding U.S. assets like real estate would no longer be subject to the U.S. federal estate tax.
The details of Wednesday's release were the subject of closed door debate and ultimately agreement amongst the leaders of Congress as well as President Trump's top economic advisors. Nevertheless, despite this milestone, the process to enact these tax reforms could take several months, if not longer, and whether these proposals will ultimately become law is far from certain.