Senate Finance Business Tax Reform Hearing: April 26, 2016
April 27, 2016
On Tuesday, April 26 at 9:30 AM, the Senate Finance Committee held a hearing entitled, “Navigating Business Tax Reform.” This hearing was convened in the wake of Senate Finance Ranking Member Ron Wyden’s (D-OR) April 26 release of a discussion draft for his bill, the “Cost Recovery Reform and Simplification Act of 2016.” Wyden’s bill would alter capital depreciation rules to condense the 100 existing depreciation rules into 6 “pools”, while maintaining accelerated depreciation.
A one-page summary of Ranking Member Wyden’s legislative proposal can be found here.
A technical explanation from the Joint Committee on Taxation can be found here.
The hearing also follows a January announcement by Senate Finance Chairman Orrin Hatch (R-UT) that he is working on a plan to eliminate the double taxation of corporate income, also known as “corporate integration”. Though the senior tax writer hasn’t been specific about the content of his plan, he indicated that he expects to release the details in June 2016.
Both Chairman Hatch and Ranking Member Wyden briefly discussed their respective tax reform proposals during the April 26 hearing, while also delving into the Bipartisan Business Income Tax Working Group’s reported findings.
Contact FTI Government Affairs for a comprehensive memo detailing statements and questions by witnesses and Senate lawmakers during the April 26 hearing, or with any questions regarding the April 26 hearing or the tax reform proposals above.