The Lobby Shop Episode #28: Reading Congress’ Tea Leaves

Josh and Liam revisit the Friday Five format for this week’s episode, discussing tax reform and yesterday’s budget adoption by the House, the North American Free Trade Agreement (NAFTA) and talk of US renegotiations and/or withdrawal, Congressional retirements and Senators Corker and Flake, the state of the GOP, and the outlook for Midterm elections.

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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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