Leader: Harvey Mogenson

 

Discussion outline:

Part I – Brief example/ discussion of the current corporate tax system as a basis to compare the Tax Reform Proposals.  This would include the concepts of a) tax rules applicable to a US corporation vs a foreign corporation/subsidiary; b) what does “effective tax rate” mean; c) the historical trend away from corporations to pass-throughs.  (We only need this last item if we want to touch upon why there are proposals for special business rates for individuals.)
Part II – Discuss the proposals for a lower corporate tax rate and the major “offsets”.  (We could even compare the “offsets” with the current list of tax expenditures to see where the offsets came from.)
Part III – Discuss the proposals for a “territorial system” applicable to dividends from foreign subsidiaries.  This would focus on “deferral” vs “exemption” and probably some discussion of global competition.

ESTIMATES OF FEDERAL TAX EXPENDITURES FOR FISCAL YEARS 2016-2020
http://sma.darien.org/wp-content/uploads/Tax-1.pdf

Tax Cuts and Jobs Act H.R. 1 Section-by-Section Summary
http://sma.darien.org/wp-content/uploads/Tax-2.pdf

Corporate Income Tax Rates around the World, 2017
http://sma.darien.org/wp-content/uploads/Tax-3.pdf

Labor Bears Much of the Cost of the Corporate Tax
http://sma.darien.org/wp-content/uploads/Tax-4.pdf

An Overview of Pass-through Businesses in the United States
http://sma.darien.org/wp-content/uploads/Tax-5.pdf

International Comparision of Effective Corporate Tax Rates
http://sma.darien.org/wp-content/uploads/Tax-6.pdf

Policy Perspectives
Ernst & Young LLP’s rapid response to the House Ways and Means Committee’s tax reform
draft bill, “The Tax Cuts and Jobs Act”
http://sma.darien.org/wp-content/uploads/Tax-7.pdf

A Turnabout on Corporate Taxes
https://www.wsj.com/article_email/a-turnabout-on-corporate-taxes-1508883600-lMyQjAxMTE3MzA1NjgwNTY4Wj/

Republican Plan: Tax People, Not Companies
https://www.wsj.com/article_email/gop-goes-with-the-global-flow-tax-people-not-companies-1509554364-lMyQjAxMTI3MzA2NjIwNjY0Wj/

Historical background and European VAT taxes.
https://www.bloomberg.com/news/features/2017-11-09/how-to-break-out-of-our-long-national-tax-nightmare

Senate Tax Reform Bill
http://sma.darien.org/wp-content/uploads/11.9.17-Chairmans-Mark.pdf