It looks like the issue of tax reform is fading away, notes Brian Graff, NAPA’s Executive Director/CEO in this month’s Washington Update video. The reason has nothing to do with the retirement industry, Graff notes, but rather potential provisions that would affect corporate America.
Some of the proposals that may be part of a potential tax reform package have started leaking out over the last several weeks. “Guess what? Large corporations don’t like a lot of this stuff,” Graff notes. “There are some pretty aggressive proposals to raise money to pay for lowering corporate tax rates that are very controversial — things like requiring advertising expenses to be amortized over five years, for one example.”
These proposals are causing large corporations to hit the pause button on corporate tax reform efforts, says Graff. “Though we may see more trial balloons over the next several months from the Senate Finance Committee or the House Ways and Means Committee, and Senate Finance maybe actually marking up their own bill, the talk about comprehensive tax reform is fading away fast.”
Members of Congress “are hitting the pause button too,” Graff notes, “saying, ‘let’s wait until after the midterm elections next year.’” That’s when tax reform will be rebooted, he believes.
To view the video, just click on it, in the right column.
