The U.S. Administration recently unveiled its outline of its 2017 tax reform proposals to the U.S. tax code, which includes reforms to the individual and business tax codes. Among other provisions, the tax rate for personal income would be broken into three brackets of 10 percent, 25 percent, and 35 percent, and the tax rate for businesses would be lowered to 15 percent. In addition, the outline includes the repeal of the 3.8 percent net income investment tax, put in place under the Affordable Care Act (ACA).
Of significant interest to the AAO, the outline proposes the repeal of the “death tax” or the “estate tax,” which the AAO has advocated repealing over the last several years.
Throughout the month of May, the Administration will hold listening sessions with stakeholders to gather input and work with Congress to develop details of a plan that can pass both chambers. House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), and other Republican Congressional leaders issued a statement noting this outline will serve as guidance for Congress and the Administration to work together on tax reform.