An Analysis of Tax Law Proposals of The President-Elect And The House

President-elect Trump made tax reform a highlight of his campaign, calling for fewer tax brackets, lower individual rates, and reduced corporate tax rates. Portions of the Trump Plan are similar to the House Republican Blueprint for Tax Reform. Over the course of the campaign, the Trump Plan has evolved to become more similar to the House Plan. The House Plan contains more details, and some of the provisions of the Trump Plan are easier to understand when read in conjunction with the comparable provisions in the House Plan. For these reasons—and because many believe that Mr. Trump will be agreeable to using the House Plan as the starting point for a bill and also might defer to tax writers in Congress on the particulars of tax reform legislation—we examine key features of both plans. This article focuses on issues relevant to individuals and businesses. It also examines the potential impact of the plans on recently enacted tax regulations and on state revenues, as well as certain tax planning strategies.

- Saba Ashraf, Wendi I. Kotzen, and Wayne R. Strasbaugh

IRS ISSUES PROPOSED REGULATIONS PROVIDING GUIDANCE ON THE TAX QUALIFICATION OF MUTUAL FUNDS

On September 27, the IRS issued proposed regulation that provide guidance relating to the gross income and asset diversification tests used to determine whether a mutual fund qualifies as an RIC for federal income tax purposes. The proposed regulations, if adopted in their current form, would have a significant effect on RICs that hold investments in CFCs or PFICs. This article discusses the tax treatment of RICs and some key takeaways from the proposed regulations.

- Joanna (Ying) Jiang and Wayne R. Strasbaugh


PENNSYLVANIA COURTS STRIKE DOWN TAX PROVISIONS. BUT WILL TAXPAYERS BENEFIT?

In three recent taxpayer-favorable decisions, Pennsylvania courts struck down important parts of Pennsylvania tax statutes, relying on the Uniformity Clause of the Pennsylvania Constitution. This article examines these cases and their implications.

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- Christopher A. Jones and Wendi L. Kotzen


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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.






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