Article prepared by and republished courtesy of our colleagues Evan Migdail, Bruce Thompson and Linda Pfatteicher; originally published here: http://www.dlapiper.com/en/us/insights/publications/2014/11/tax-reform-after-the-mid-terms/.
While some aspects of the agenda for the incoming Republican-controlled 114th Congress are still in formulation, there is no question that tax reform will be a top priority.
Both the expected new Senate Majority Leader Mitch McConnell (R-Kentucky) and House Speaker John Boehner (R-Ohio) have repeatedly stated that tax reform is a fundamental part of their promise to move the country in a new direction. Also, in recent weeks, key Administration officials, including Treasury Secretary Jack Lew, have signaled that tax reform is a potential legacy issue for the President in his remaining two years in office.
The outcome of the elections suggests that voters were frustrated with a federal government, including the Congress, that appeared incapable of addressing the nation’s challenges. Republican leaders have identified the tax system as an impediment to economic growth at home and global competitiveness for US companies. Their challenge now is to show the American people that they have listened to the frustration and are ready and able to work with their Democratic colleagues and the President to reform a tax system that is badly out of date.
Although many of the details of tax reform have yet to be worked out, the basic structure, especially on the corporate side, has been debated in Congress in depth over the past few years and there is substantial bipartisan common ground as to the approach.
Now is the time for companies to look at taking part in the legislative process around tax reform. Find out more about this evolving situation and the legislative process.