Federal Tax Reform “Blueprint” Described


In a recent post, OMA Connections Partner, RSM US, updates us about the federal tax reform proposal known as the Blueprint: “The Republican leadership of the House of Representatives, and the leadership of the Ways and Means Committee, have advanced an innovative tax reform proposal that is commonly referred to as the Blueprint. As expected of nearly all income tax reform proposals, it would reduce individual income tax rates and the number of tax brackets, paying for those rate reductions with a broadening of the tax base. For example, the Blueprint would reduce the top individual income tax rate from 39.6 percent to 33 percent, eliminate the alternative minimum tax, and eliminate most individual, non-business deductions, other than those for mortgage interest and charitable donations. It does not appear that the existing social security tax on earnings above the “wage base” of approximately $120,000 would be affected. The Blueprint’s most important innovation, however, is its novel approach to the taxation of business and investment income, described more fully here.”  3/2/2017