Tax Reform Framework Released

• Individual brackets to 12%/25%/35% from 7 with 39.6% highest
• Standard deductions doubled
• Child Tax Credit kept and enhanced GOP
• ‘Loopholes’ eliminated – All but the following to go away
  •  Mortgage interest deduction kept
  •  Charitable contributions kept
  •  Benefits that encourage work, education & retirement security
• Alternative Minimum Tax (AMT) – Gone
• Estate Tax – Eliminated

Business Tax Reform

• Corporate Rate down to 20%
• Tax Rate on Small Business income 25% including
  • Sole Proprietors
  •  Partnerships & S Corporations
• “Expensing” of Capital Investments for at least 5 years
• Interest Expense deduction limitations imposed for Corporations
• US move to a ‘territorial’ tax regime
  •  Repatriation of overseas earnings – Deemed to occur
  •  Spread of tax over several years
• Business Special Deductions and Credits mostly gone
  •  Research & Experimentation Credit retained
  •  Sec. 199 Manufacturing deduction gone