Morning Tax: T-minus 2 days

I spoke to Politico‘s Bernie Becker for his Morning Tax tipsheet about the conspicuous lack of detail in the tax bill so far:

It’s understandable why Brady and his crew would want to wait until the last possible moment to let K Street know about the potential trade-offs in tax reform — i.e., which of their tax breaks might be on the blocks. “The goal here was to show enough cards to keep the broader business community at the table as long as possible, get a budget done, and hope at the other end that the totality of the bill (and the underlying political imperative) is compelling enough to overcome any parochial offenses that will inevitably show up the text,” Liam Donovan, a lobbyist at Policy Resolution Group, told Morning Tax.

Read the full piece here.

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BNA: Multinationals Wary of Minimum Tax in Republican Framework

I spoke to Laura Davison from Bloomberg BNA about the international provisions in the GOP tax plan and the broader need for an orderly transition to the new system:

Another central focus among companies is how to transition to a new system, Liam Donovan, a lobbyist at Bracewell LLP, told Bloomberg Tax.

“If that’s what we are going to do, how are we going to get from A to C? What’s the in-between step?” Donovan asked. “Those decisions need to be made based on current law,” he said. “How do we grandfather things to not create disruption and uncertainty?”

Read the full piece here.

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BNA: Passthrough Gaming Solution Eludes GOP as Tax Bill Release Nears

I spoke to Laura Davison from Bloomberg BNA about the GOP effort to craft a workable solution to provide the tax cuts to pass-through businesses that the framework calls for:

Considering how much a company pays in wages is a broader measure of the value of the business than just counting machinery and land, Liam Donovan, a lobbyist with Bracewell LLP, said. That could be one way of determining profits versus wages. The trick is also targeting enforcement on situations where there is more opportunity for abuse, such as family businesses where people have control over the company and their compensation levels, he said.

“70-30 is a non-starter for a lot of groups. That would be the quickest way to hit a snag in this plan,” Donovan said. “Congress is put in a tough spot of finding the least-bad solution.”

Read the full piece here.

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