It has been over 30 years since a wholesale revamp of the tax code has taken place. With full control of the federal government, Republicans are poised to move tax reform packages through Congress. Buzz is building about a fundamental change to the taxation of businesses through a “cash flow tax” – a tax that is levied on the cash entering the business less the cash leaving – which is included in the House Republican’s Tax Blueprint. This concept currently only applies to c-corporations, remaining silent on the treatment of pass-through (subchapter-S) firms that pay taxes through the individual rate.  However, lawmakers have yet to flesh out many details on the tax plans, and AGC will continue to monitor and analyze proposed changes that will affect our member companies.
For more information, contact Brian Lenihan at [email protected] or (202) 547-4733.