The Tax Rate Debate

As the summer wears on the Trump Administration and Congress are coming close to initiating their push for major tax reform legislation. If this task is accomplished, it will likely be the most significant change to the Internal Revenue Code (IRC) since the tax reform package passed and signed into law in 1986 during the presidency of Ronald Reagan.

tax rate

As this process unfolds, there will be many contentious debates around maintaining revenue neutrality ranging from the possible implementation of a border adjustment tax and the elimination of various “loopholes” and deductions. A large portion of this debate will include a discussion of the tax rates that will apply to corporations and other business entities (such as partnerships, disregarded entities, and other pass-through entities). The tax rate debate is exemplified in the gulf between the Trump Administration’s proposed rate of 15% for corporations and other business entities and the House Republican proposed rate of 25% as articulated in Speaker Paul Ryan’s (R-WI) “Better Way” policy agenda.

This article focuses on the impact likely to occur if the 15% proposed tax rate for corporations and other business entities is adopted and possible proposals which may be implemented to curtail abuse of the rate.

Read more about the proposed tax rate debate here.

About The Author

Daniel Quintana

Daniel Quintana of Kurtz & Company, P.C. in Dallas Texas.