US corporate tax reform: have the seeds been planted and is there a deal to be done?
- The US Senate has worked on a possible tax package since January. But no clear consensus
has emerged on a larger package. Projected Tax Revenue
- The real focus is on corporate tax reform, (Fiscal Year 2015) Excise Taxes
spurred on by the inversion debate. ‘i 394 Paras i Isc. o
- In the Senate, a bipartisan bill was offered to Zo hm encourage corporate profits abroad to repatriate
Corporate Income
at a significantly lower rate (the Portman- ( Taxes Schumer bill). \ bln - In the House, a plan was offered in late July \ nde ; . ndividual Income that would allow corporations to repatriate at a NX Taxes
lower rate if they invested in “research and “ 46%
development” (the Boustany-Neal bill). The revenue from the deal would pay for the Highway Trust Fund — which needs money.
- What is interesting for both bills is what did not happen: The White House remained silent.
Payroll Taxes 32%
- Could Congress (in league with US Treasury) slip a major corporate tax report into the appropriations bill using the “Reconciliation”
process? Source: OMB Deutsche Bank Francis J. Kelly Global Public Affairs francis.j.kelly@db.com 4
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