Since the sworn in of the new US President, countries around the world have been paying close attention to see whether he can honour the tax reform proposal offered during his presidency campaign (hereinafter referred to as “Campaign Proposals”). On April 26, 2017, approaching the new President’s first 100 days in the White House, Treasury Secretary Steven Mnuchin and National Economic Council (NEC) Director Gary Cohn officially unveiled the administrative principles (hereinafter referred to as “Principles’) of the new President’s tax reform plan during a White House press briefing (hereinafter referred to as “the Briefing”)1. Although the details of the tax reform plan was not disclosed, the announced principles (e.g. slashing Corporate Income Tax (CIT) rate and simplifying Individual Income Tax (IIT) rate brackets, etc.) are expected to result in significant economic impact. If the tax reform plan could be successfully passed and implemented, it would be definitely a milestone in the US tax reform.
In this issue of News Flash, we will share with you on how the Principles differ from the House Republican blueprint of tax reform (hereinafter referred to as “the Blueprint”) released in June 2016 as well as the Campaign Proposals2, and the highlights of the new President’s reform plan.