Overview
Brady Releases Outline on House Republicans' 'Tax Reform 2.0' Proposal: House Ways and Means Chair Kevin Brady (R-TX) released an outline of House Republicans' "Tax Reform 2.0" proposal. The proposal focuses on three main components: (1) making the individual and small business tax cuts enacted by P.L. 115-97 permanent; (2) promoting family savings through retirement accounts, a new universal savings account, and expanded 529 education savings accounts; and (3) spurring new business innovation by helping new businesses write off more of their initial start-up costs, and removing barriers to growth.
Speaking at a lunch event today, Chairman Brady outlined his expectations for the Tax Reform 2.0 process. He suggested the three main components of the proposal will be divided into separate bills to facilitate timely consideration by the Senate of at least some of the key components. He expressed his belief that the chambers are not far apart on retirement security and new business innovation issues, but he does not foresee action in the Senate before the November elections on permanence. The Chairman also said he expects the bills to be tightly managed with few, if any, opportunities for other tax riders.
Ninth Circuit Reverses Tax Court Opinion in Altera Corp: Today, in a 2-1 decision, the Ninth Circuit reversed the Tax Court's decision in Altera Corp. v. Commissioner. While the Tax Court had found that Treas. Reg. § 1.482-7A(d)(2) (under which related entities must share the cost of employee stock compensation in order for cost-sharing arrangements to be classified as qualified cost-sharing arrangements) was invalid under the Administrative Procedure Act, the Ninth Circuit disagreed, finding that the regulation did not violate the Administrative Procedure Act and was entitled to Chevron deference. (Judge Reinhart, one of the judges in the majority, died March 29, 2018.)