Republicans Issue Much Anticipated Tax Reform Plan
This morning, the Trump administration in coordination with the House Ways and Means Committee and Senate Committee on Finance released their much anticipated tax reform plan. Though the plan remains sparse on details, the document includes several provisions that may impact financial institutions including:
- A reduction in the corporate tax rate from 35% to 20%
- A new framework for taxing small businesses including S corporations and partnerships at a maximum tax rate of 25%
- The preservation of the home mortgage interest deduction (though fewer taxpayers will likely itemized deductions with the proposal to raise the standard deduction to $24,000 for married couples filing jointly)
- Immediate expensing of certain capital investments for at least 5 years in lieu of depreciation
- Partial limitations on deducting net interest expense by C corporations, which could impact certain bank borrowers
Several of these provisions are similar to earlier Trump and Republican proposals as outlined in our article
How Trump’s Tax Reform Plan May Impact Community Banks published in May 2017.
To discuss how these issues may impact your financial institution further, please contact a member of our financial institution tax team.
Amanda Garnett
Phone: 309-495-8842
Amanda.Garnett@CLAconnect.com
Peoria, IL
Tim Malecha
Phone: 612-376-4730
Tim.Malecha@CLAconnect.com
Minneapolis, MN
Brad Mattson
Phone: 612-376-4569
Brad.Mattson@CLAconnect.com
Minneapolis, MN
Joshua Juergensen is a principal with CLA. He works with banks and credit unions nationwide, managing audit engagements, directors’ exams, external loan file reviews, internal audits, and other consulting services.
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