Tax News Bulletin 02.23.17
Today’s Tax News
- The Wall Street Journal reports on Treasury Secretary Steven Mnuchin’s ambitious effort to secure the Trump administration’s promised tax-code overhaul by August. It’ll be tough. So far the Senate has no plan. And the House may have contrasting objectives including the introduction of a border-adjustment provision, limitation of deductions, and the controversial goal of achieving revenue neutrality.
- Phil Gramm, former chairman of the Senate Banking Committee, argues that the border-adjustment provision poisons the prospects for tax reform.
- Ed Zollars at Current Federal Tax Developments writes about Kauffman v. Commissioner, TC Memo 2017–38 which holds that no deduction is allowed for payment between related entities when reasonableness of payment is not demonstrated.
- State level Republican legislatures and governors are locked in an internecine battle over tax policy.