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Tax reform: Human resources and global mobility

Insights for the path ahead

​US tax reform is a top priority for both the Legislative and Executive branches of the US government. This is a high priority issue for US companies and the potential impact of tax reform on human resources and global mobility programs should not be overlooked. These periodic summaries highlight the latest developments and planning considerations for organizations.

Regulatory uncertainty’s impact: Global talent and mobility planning (June 2017)

Economic and political developments, from the macro to the specific, are feeding a palpable sense of uncertainty among talent and mobility professionals. As calendar Q1 2017 crossed to Q2, the UK government began formal proceedings for its withdrawal from the European Union, with potentially major implications for mobility programs and workers. Across Europe, a number of major jurisdictions have elections. And, in the United States, cross-border mobility policies and regulations remain top priorities. Review a summary of these developments and the key areas of global mobility and talent development that could be impacted.

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PPACA repeal-and-replace legislation clears House, but Senate revisions likely (May 5, 2017)

On May 4, the House of Representatives voted 217-213 to approve a modified version of budget reconciliation legislation that would repeal major pieces of the Patient Protection and Affordable Care Act of 2010 (PPACA) and replace it with a system aimed at facilitating the purchase of health insurance on the individual market through refundable tax credits and liberalized rules for tax-favored health savings accounts. Explore Deloitte Tax LLP’s perspective and summary of key provisions.

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Link to the full article.

White House unveils largely familiar tax reform principles (April 26, 2017)

The Trump administration released a one-page fact sheet on April 26, 2017, outlining principles for overhauling the US tax code that include, among other things, lowering the top income tax rate for corporations and passthrough entities to 15 percent, as well as shaving individual rates, compressing the rate brackets and significantly increasing the standard deduction.

Many of the principles resemble those that then-presidential candidate Donald Trump put forward on the campaign trail in 2016. The administration did not couch its principles in legislative language, nor did it provide technical descriptions explaining how specific provisions would operate. Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn explained at an April 26 press briefing that the administration would develop those details in consultation with congressional leaders and release a formal proposal later this summer.

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Link to the full article.

Tax reform: Human resources and global mobility (April 2017)

Tax reform is a top priority for President Trump and Republican leaders in Congress. Both groups have expressed a strong desire for significant changes to the current tax code and Republican control of both the Executive and Legislative branches of government may make reform a real possibility. In addition, there is a greater sense of urgency among congressional taxwriters given recent developments in the global tax landscape.

Both the Trump administration and House Republicans have put forth proposals for tax reform; although these proposals have important differences and lack a number of technical details, there appears to be quite a bit of agreement around key policy objectives. Specifically, both proposals include reducing corporate and individual tax rates, encouraging the on-shoring of jobs to the United States, and repealing and replacing the Affordable Care Act (ACA). Download the summary of top considerations and planning activities for human resources and global mobility programs.

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Individual tax reform: Impact on global mobility programs (April 2017)

Tax reform continues to be a high priority in Washington. Both President Trump and House leadership have recently indicated that tax reform would be their next area of focus. Although the proposed tax changes lack a great deal of detail and face tough challenges, it seems clear that if change is enacted, individual tax rates are likely to decrease. Currently, the maximum federal income tax rate is 39.6 percent. The proposed maximum marginal tax rate proposed by President Trump and the House GOP is 33 percent. Further, the seven current income tax brackets would be compressed into three brackets.

These changes could have a significant impact on the costs of managing global mobility programs. Without proper planning, companies may face a surprising increase in tax reimbursement costs even though US tax rates decrease. In an uncertain environment, it is important for US companies to understand how these potential changes could impact their global mobility programs and the costs of international assignments. Download the latest summary to learn more.

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Ryan cancels House floor vote on American Health Care Act (March 24, 2017)

House Republican efforts to advance the American Health Care Act (AHCA), their long-awaited replacement for the Obama-era Patient Protection and Affordable Care Act (PPACA), suffered a setback this week after Speaker Paul Ryan, R-Wis., canceled a planned March 24 floor vote because the measure appeared very unlikely to attract enough GOP votes to guarantee its passage.

Link to the full article.

ACA repeal and replace: The proposed American Health Care Act (AHCA) and its potential impact on employers (March 8, 2017)

On March 6, 2017, House Republican leaders made public the American Health Care Act (AHCA). Leaders have expressed a desire to move the legislation through the House in the next few weeks, leaving time for the Senate to complete action on the bill prior to Congress’s two-week recess set to begin April 10. Committee mark-ups have begun. Download the summary of the primary provisions of the AHCA as it stands now, obstacles that may lead to changes prior to adoption, and what the main provisions mean to employers.

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Tax reform proposed AHCA bill considerations

Special edition | Health care reform in America: What's next for employers?

Host: Elizabeth Drigotas, principal, Deloitte Tax LLP
1 Intermediate CPE credit | Specialized Knowledge & Applications

On March 24, the proposed American Health Care Act was pulled before it could be voted on in the House of Representatives. With the Affordable Care Act (ACA) still in place for now, what are important implications and actions for employers? We'll discuss:

  • Key provisions of the ACA remaining in force and areas in which reforms might be considered.
  • Potential impacts of these and other recent ACA developments on employers, including most importantly on 2017 reporting requirements.
  • The importance of, and insights on, tracking full-time employees for reporting purposes.

Learn how employers are faring amidst proposed changes and what might come next with health care reform.

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Dbriefs webcast—A new age of talent mobility: Planning for tax reform and regulatory uncertainty

Host: Elizabeth Drigotas, principal, Deloitte Tax LLP
1 Intermediate CPE credit | Taxes

Tax reform is one of the key priorities of the new US administration and GOP congressional leaders, with both groups proposing significant changes to the taxation of both corporations and individuals. Other regulatory changes are being proposed and considered as well. What could these changes mean for your organization's global mobility and rewards programs? We'll discuss:

  • Key planning considerations in preparation for potentially reduced corporate and individual tax rates.
  • Potential impacts of proposed changes on the costs and policies associated with global mobility programs.
  • Global workforce and mobility strategies relating to changing policies and environments in the United States and other countries.

Learn how proactive planning can benefit your organization’s talent and global mobility program activities.

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