Linda Carlisle Comments on House Republican Tax Blueprint in Bloomberg BNA Daily Report for Executives

"'Gaming the System,' Border Taxes Questioned in GOP Tax Plan"
Bloomberg BNA Daily Report for Executives
06.27.16Linda Carlisle commented on the House Republican tax blueprint, which includes a proposed shift to full expensing, border adjustments and differences in top tax rates for individuals and passthrough business income. Practitioners say taxing individual income at a top rate of 33 percent and passthrough business income at 25 percent may prompt some to game the system. "What it is seems to be saying is never take income in except through a passthrough form, because you get a higher rate as an individual," Carlisle said. The tax plan also moves towards full expensing, shifting the incentive from debt financing to equity financing, a key difference from the plan proposed in 2014 by former House Ways and Means Committee Chairman Dave Camp. Carlisle said ideas that show up in the Camp draft and this proposal, such as moving toward a territorial system and the elimination of the corporate alternative minimum tax, are provisions that could be likely to make it into an overhaul of the tax system as early as next year.
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