Tax Policy Update - May 05, 2015

NUMBER OF THE WEEK: 1,462. The total number of comments received by the Senate Finance Committee's five bipartisan tax reform working groups in response to the committee's request for public input on overhauling the nation's tax code. The working groups, each focused on different areas of the tax code, are expected to begin closed-door roundtable discussions with all committee members this week to flesh out options under consideration. The working groups are slated to deliver final reports to Chairman Orrin Hatch (R-UT) by the end of the month. There are some indications that the international tax working group, which many say is progressing at a faster clip than the others, may release a draft proposal for public scrutiny following the roundtable discussions.

PROGRAMMING NOTE: Starting this week, we will help you sift through some of the comment letters submitted to the Senate Finance Committee working groups. Each week, we will put the spotlight on one of the five working groups and highlight some of the more interesting submissions, particularly those from leading trade associations and business organizations with an influential voice in Washington. Please note that we are not advocating for any particular policy position as we highlight various groups' submissions.

This week, let's kick off with the International Tax Working Group!

Comment Spotlight: The Business Roundtable

The Business Roundtable's (BRT) comments focused on two specific items: (1) the adoption of a 25 percent corporate tax rate and (2) a "modern" international tax system. The BRT advocates for a "territorial-type" tax system, much like those currently implemented in many other countries with which the U.S. competes in the global economy. According to the BRT, the principles of tax reform include: Promoting economic growth and competitiveness; providing a simplified, efficient, and unbiased tax system; and establishing permanence to support long-term business decisions and commitments. The full submission can be found here. Members of Congress continue to disagree about the political viability of lowering the corporate rate without simultaneously lowering the rate for pass-through businesses and other individual income tax payers.

LEGISLATIVE LANDSCAPE

Senate Finance OKs 529 College Savings Bill. A bill to improve and expand 529 college savings plans (S.335) has been approved by the Senate Finance Committee without amendments. Similar to Rep. Lynn Jenkins (R-KS) bill...