Simpson Thacher Discusses Trump and GOP Lawmakers’ Tax Overhaul Plan

On September 27, President Trump, the House Committee on Ways and Means and the Senate Committee on Finance released their framework for tax reform (the “framework”), which represents the most detailed proposal for changes to the tax code issued during the Trump administration.  The framework’s key elements include:

  • a reduction in corporate tax rates to 20% and partial limitation on the deductibility of interest for corporate taxpayers;
  • a shift to a modified “territorial” regime of corporate taxation that eliminates tax on dividends from foreign subsidiaries but subjects all foreign earnings to current taxation at a minimum rate to be determined;

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