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Corporate Tax Reform: What The Power Industry Needs To Know

by Paul Maxwell | Mar 14, 2017   ()

US corporate tax reform has been a key plank in the Republican platform for several years and has recently become a key focus of the Trump administration. In June 2016, the House Ways and Means Committee Republicans led an effort to unveil a blueprint toward a “Better Way for Tax Reform.” This proposal, backed by House Leader Paul Ryan, would (among other things) reduce the corporate income tax rate from 35% to 20%, allow capital investments to be fully and immediately deductible, and dramatically reduce tax rates on funds repatriated to the United States. The downside of the proposal is that it would eliminate the deductibility of interest expense on future loans. It would also introduce a so-called border adjustment, which would disallow deductions for import purchases while exempting export profits from taxation. Treasury Secretary Steven Mnuchin says the Trump administration is working with House and Senate Republicans with the aim of passing major tax reform legislation before Congress leaves for its August recess. Read More

Source: Forbes
Source: Forbes

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