According to many sources, President-elect Trump has grand legislative plans in the first 100 days of his presidency, including rebuilding the nation’s crumbling infrastructure, the repeal of Obamacare and comprehensive tax reform.
One of the main goals of Trump’s intended tax reform is to redesign the way companies are taxed so that they can be competitive anywhere in the world. There also is a call to repatriate corporate earnings from overseas and to tax those earnings at a lower rate.
Currently, the tax code provides incentives for companies to move jobs or headquarters overseas to pay less tax and, presumably, to be more competitive and profitable. Comprehensive tax reform will likely eliminate tax incentives for companies to move jobs or headquarters overseas.
As for individuals, Trump has proposed to decrease the number of individual tax brackets to three from the current seven and reduce or eliminate deductions for wealthy taxpayers. Comprehensive tax legislation in 2017 is quite likely because both the House and the Senate have GOP majorities along with a GOP President in the White House. What do you think?