Will changing tax rules affect your business?
Understand the potential impact of tax reform on business growth plans
From a major federal tax overhaul to specific state and local tax law changes, government entities are constantly adjusting the tax landscape for businesses. Further, both President Trump and the House Republicans believe that tax reform is essential if the U.S. economy is to increase its rate of growth.
As a business leader, you need to be aware of what is happening and what may happen to the taxation of your business. When the rules are constantly changing, that can be difficult. We stay on top of changes – and potential changes – so that you can plan your business strategy accordingly.
State & Local
SUMMARY OF PROPOSED REFORM
RSM Principal Don Susswein explores the potential impact of the domestic proposals found in the House GOP Tax Reform Blueprint.
Both the Trump administration’s tax proposal, as well as the House Republican Tax Blueprint, contain provisions which would tax unrepatriated earnings of foreign subsidiaries of U.S. multinational corporations.
Contending with several quarters of weak growth in overall state tax collections, between 25 and 40 states are facing revenue shortfalls. The budget season is heating up with a flurry of legislation proposed to close those budget gaps for the 2018 fiscal year.
Recent statements from key players in tax reform cast serious doubt on the future of the proposed border adjusted tax.
Although the specific provisions and timing of tax reform remain uncertain, it seems likely that business tax rates will be lower in the future. Given this expectation, prudent planning for employers includes accelerating deductions into periods before the rates will drop, leading to a permanent tax savings from the rate differential.