US Tax Reforms Outline
On 26 April 2017, the Trump administration put forward a one page document outlining their proposal for US tax reform. National Economic Council Director, Gary Cohn and Treasury Secretary, Steve Mnuchin presented a one page document with descriptions of target tax rates and a handful of proposals on the tax base.
The Trump administration hopes that the proposed tax reform will trigger a growth in the US economy, creating new jobs across the country. In addition the reform aims to simplify the tax code whilst lowering the business tax rate.
Alongside this the business reform will see the lowering of the business tax rate from 30% to 15% for public corporations and “pass-through” businesses, including partnerships, S corporations and sole proprietorships. At present US companies are taxed on their global income not just their income earned in the US, however the business reform will see a shift to a territorial system for international taxation – income earned by US companies outside the US would not be subject to US tax.
Many details are still being ironed out with many becoming increasingly anxious to see what the actual reform proposal will entail.
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