December 6, 2017

MAKE TAX LAWYERS GREAT AGAIN!:

'Holy crap': Experts find tax plan riddled with glitches : Some of the provisions could be easily gamed, tax lawyers say. (BRIAN FALER 12/06/2017, Politico)

Republicans' tax-rewrite plans are riddled with bugs, loopholes and other potential problems that could plague lawmakers long after their legislation is signed into law.

Some of the provisions could be easily gamed, tax lawyers say. Their plans to cut taxes on "pass-through" businesses in particular could open broad avenues for tax avoidance.

Others would have unintended results, like a last-minute decision by the Senate to keep the alternative minimum tax, which was designed to make sure wealthy people and corporations don't escape taxes altogether. For many businesses, that would nullify the value of a hugely popular break for research and development expenses.

Some provisions are so vaguely written they leave experts scratching their heads, like a proposal to begin taxing the investment earnings of rich private universities' endowments. The legislation H.R. 1 (115) doesn't explain what's considered an endowment, and some colleges have more than 1,000 accounts.

In many cases, Republicans are giving taxpayers little time to adjust to sometimes major changes in policy. An entirely new international tax regime, one experts are still trying to parse, would go into effect Jan. 1, only days after lawmakers hope to push the plan through Congress.

The GOP basically has enough votes in each house to pass any bill that cuts the corporate tax rate, so why not just strip everything else out and pass that?
Posted by at December 6, 2017 7:36 AM

  

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