Republican leaders unveiled a framework document that represents advancements and agreements they have reached on some of the broad tax issues this week. The document states that the Administration and Republican Leaders are developing a unified framework with the goal of achieving fiscally-responsible tax reform that is “built for growth, supports middle-class families, defends workers, protects jobs, and puts America first.” The framework includes:
- Tax relief for middle-class families. The simplicity of “postcard” tax filing for the vast majority of Americans
- Tax relief for businesses, especially small businesses
- Ending incentives to ship jobs, capital, and tax revenue overseas
- Broadening the tax base and providing greater fairness for all Americans by closing loopholes
Of specific interest to the American Soybean Association (ASA), the framework addresses the issue of interest deductions by indicating that “the deduction for net interest expense incurred by C corporations will be partially limited and the committees will consider the appropriate treatment of interest paid by non-corporate taxpayers.”
The framework allows businesses to “immediately write off (or “expense”) the cost of new investments in depreciable assets other than structures made after Sept. 27, 2017, for at least five years. This policy represents an unprecedented level of expensing with respect to the duration and scope of eligible assets. The committees may continue to work to enhance unprecedented expensing for business investments, especially to provide relief for small businesses.”
The leaders indicate that this framework serves as a template for the tax-writing committees that will develop legislation through an inclusive committee process and they welcome and encourage bipartisan support and participation in the process.
For additional details, see the tax framework document here.