Yesterday, Republican leaders working on tax reform proposals released a nine-page document highlighting the various components of what may be included in tax reform legislation moving through Congress later this year. The proposal mentions several key components of a new tax package, but also leaves several key matters completely or partially unaddressed.
The Republican proposal would:
- collapse current individual rates into three brackets
- lower the top corporate rate to 20 percent
- limit the rate applied to pass through entities to 25 percent
- eliminate the death tax (but is silent on whether stepped up basis would be entirely maintained)
- include expanded expensing for capital investments (but may eliminate other important deductions like state/local taxes)
There are a number of issues that are not specifically addressed in the proposal including cash accounting and treatment of 1031 exchanges. As further details are released, Western Growers will continue evaluating the full package and its impact on our members.
For more information, read Forbes’ “What’s In And What’s Out: The GOP Tax Reform Proposal” story or contact Dennis Nuxoll or Ken Barbic at (202) 296-0191.