On Friday, February 28, 2014, FEI held a joint Private Company Roundtable/IOU webcast on the issues that will be impacting senior financial executives in the coming months. Staff members from FEI’s Washington, D.C. office were joined by Dave Olander, Republican Chief Tax Counsel for the House of Representatives Ways and Means Committee. Mr. Olander touched on Chairman Dave Camp’s (R-Mich.) recently released discussion draft entitled, “Tax Reform Act of 2014”.
Highlights from the Camp proposal include:
- A 10% and 25% tax rate for individuals, plus a 10% surcharge on earnings over $400,000.
- A 25% corporate tax rate.
- Repeal of the Alternative Minimum Tax (AMT).
- Repeal of Section 199 for taxable years beginning after December 31, 2016, and reduction of the applicable percentage for 2015 and 2016 to six percent and three percent, respectively.
- Simplification of compliance through various business deductions and credits reform.
- Permanent section 179 expensing on as much as $250,000 in capital investments each year, including real property.
- A 95 percent dividends received deduction (DRD) for eligible foreign source dividends and a toll tax on pre-effective date undistributed foreign earnings and profits (E&P) of US owned foreign corporations, as well as anti-base erosion rules.
- Repeal of the Last In, First Out (LIFO) accounting system.
- Simplification of the rules governing S corporations.
- Maintenance of current law on the estate tax.
- An improved and permanent R&D tax credit
A section by section analysis of the discussion draft can be found
here.
After Mr. Olander addressed the audience, FEI staff spoke on various topics including tax reform, financial services, the budget process, and the 2014 midterm elections.
The full presentation is below.
For more information on this webcast or the topics within, please contact Tyler Roberts, manager of Government Affairs, at [email protected].