On September 27, 2017, the Trump Administration, the House Committee on Ways and Means, and the Senate Committee on Finance unveiled their “Unified Framework for Fixing Our Broken Tax Code.” The full, nine-page framework offers an overview of the four principles that President Trump has laid out for tax reform, and the specific goals for each.
According to the U.S. Department of the Treasury, “This framework will deliver a 21st century tax code that is built for growth, supports middle-class families, defends our workers, protects our jobs, and puts America first. It will deliver fiscally responsible tax reform by broadening the tax base, closing loopholes and growing the economy.”
Included in the framework are specific goals for lower individual as well as business tax rates. On the individual front, the framework calls for replacing the current individual tax brackets with three brackets set at 12, 25 and 35 percent and leaving the possibility of a fourth higher tax bracket for upper-income individuals. As for businesses, the framework calls for a 20 percent corporate tax rate, a new 25 percent tax rate for certain passthrough business income, and international reforms including a territorial tax system and a one-time mandatory repatriation tax.
If you have questions about how this framework could impact you and your business, please contact Gray, Gray & Gray’s Tax Department at (781) 407-0300.