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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.

Comparison of current US tax reform proposals (November 20, 2017)

US tax reform proposals continue to move quickly through the legislative process and achieved several important milestones this past week, including approval of the House bill, amendments to the Senate proposal, and approval of the Senate proposal by the Senate Finance Committee. The attached summary highlights key provisions of current tax reform proposals that may impact company mobility and rewards programs.

Dbriefs webcast—US tax reform: What businesses and individual taxpayers should know

November 29, 2017

Host: Terri LaRae, partner, Deloitte Tax LLP
1 Overview CPE credit | Taxes

Congressional efforts to enact tax reform include potential changes to the tax code that are quite broad. What recent tax legislative and regulatory developments could significantly impact your company's business models? We'll discuss:

  • The current tax policy environment and possible future developments.
  • Likely corporate and individual tax rate changes.
  • Implications and outlook for base-broadening provisions, such as international repatriation, full expensing, and non-deductibility of interest, among other topics.

Participants will learn about what could be the first meaningful tax reform in three decades while exploring emerging requirements that could impact businesses and practical steps to be taken in response.

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Dbriefs webcast—Tax reform: Ways and Means Republicans fill in the blanks

November 9, 2017

Host: Terri LaRae, partner, Deloitte Tax LLP
1 Overview CPE credit | Taxes

House Ways and Means Committee Republicans have released a tax reform legislative proposal with specific details on how tax relief provisions would operate and what policy tradeoffs will be necessary to help pay for them. We’ll discuss:

  • Proposed tax relief provisions, revenue offsets, and their potential impact on business and individual taxpayers.
  • The next steps for action in the House and what might be expected from the Senate.
  • Conditions that could hasten or hinder GOP efforts to see tax reform enacted this year.

Participants will gain a deeper understanding of the proposals on the table, how they might impact businesses, and tax planning considerations as the legislative process unfolds.

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

Tax reform is a top priority for President Trump and Republican leaders in Congress. With major health care legislation almost certainly off the agenda for the remainder of the year, comprehensive tax reform is poised to take center stage as a key legislative focus.

Congressional Republicans, the President, and top Administration officials worked together over the summer to refine proposals and now the “Big Six” team of negotiators1 has released a unified tax reform framework (“the framework”). The framework provides high-level guidance regarding the priorities for the tax reform process and it challenges the Congressional taxwriting committees to work out the details to make those priorities a legislative reality. Core elements include reducing corporate, passthrough, and individual tax rates and encouraging the “on-shoring” of profits and jobs to the US.

The potential impact of tax reform on US companies is a high priority issue and the effect to HR and global mobility programs should not be overlooked.

1House Ways and Means Committee Chairman Kevin Brady, R-Texas, Senate Finance Committee Chairman Orrin Hatch, R-Utah, House Speaker Paul Ryan, R-Wis., Senate Majority Leader Mitch McConnell, R-Ky., Treasury Secretary Steven Mnuchin, and National Economic Council Director Gary Cohn

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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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.

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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