US policymakers are reviewing economic models which suggest that a reduction in tax rates can promote growth and, in turn, raise more taxes from increased economic activity
Both the US House Republican “blueprint” for tax reform and the Trump Administration’s “core principles” for tax reform propose repealing unspecified “special interest” tax benefits. Removing existing deductions from taxable profits or eliminating certain tax credits will be necessary in order to preserve tax revenues and pay for a reduction in US federal tax rates. A rate reduction is the objective that is central to all US tax reform plans. The question is - just what reliefs or credits will be preserved and which will be lost?
In this article, Sharon Burke looks at past attempts at US tax reform to assess if some measures under consideration in past proposals could be reconsidered as part of the current debate on US tax reform.
This article is part of a series from our latest TaxWatch newsletter. Click here to read the full article, or browse the range of latest articles on TaxWatch. To register (first time users) or reset your password, please click here.
© 2018 KPMG, an Ireland partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.