Federal tax reform will be marquee fight in Washington this year

Get set for tax reform to be the marquee battle pitting business interests against each other as they seek to protect their piece of the pie. Specifically, the...

With a unified control of Washington, tax reform will be the marquee battle that will pit business interests against each other as they seek to protect their piece of the pie. The specific provision gathering a lot of attention is the border adjustment tax — a proposal that would make significant changes to the corporate tax structure.

The proposal essentially exempts exports from corporate taxes while taxing imported products from other countries. It is designed to encourage more manufacturing in the U.S., however, it will likely increase costs for consumers on everyday products. A variety of interests from all ends of the political spectrum have begun to stakeout positions on this issue. How this specific provision is addressed will likely have a significant impact if tax reform is passed this year.

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