1 / 16

NAM Public Affairs Conference “Fiscal Shock” April 15, 2013

NAM Public Affairs Conference “Fiscal Shock” April 15, 2013. Hazen Marshall The Nickles Group, LLC. Current Budget State of Play. Budget Control Act sequester + FY13 minibus appropriations bill = a political yawn House, Senate, and President produce budgets messaging/negotiating documents

fern
Download Presentation

NAM Public Affairs Conference “Fiscal Shock” April 15, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NAM Public Affairs Conference“Fiscal Shock”April 15, 2013 Hazen Marshall The Nickles Group, LLC

  2. Current Budget State of Play • Budget Control Act sequester + FY13 minibus appropriations bill = a political yawn • House, Senate, and President produce budgets messaging/negotiating documents • What happens between now and August recess? The Nickles Group, LLC

  3. Comparing House, Senate, and President’s Budgets • Claims of how much “deficit reduction” has been enacted in recent years are subjective…depends on the starting point. • Claims of how much a budget plan will reduce future deficits are even more subjective…depends on the baseline. • Focus instead on the actual results a budget produces – not the change from some subjective starting point. The Nickles Group, LLC

  4. The Nickles Group, LLC

  5. The Nickles Group, LLC

  6. The Nickles Group, LLC

  7. The Nickles Group, LLC

  8. The Nickles Group, LLC

  9. The Nickles Group, LLC

  10. The Nickles Group, LLC

  11. The Nickles Group, LLC

  12. Tax Reform • Budget battles in the 112th Congress prevented serious tax reform discussions as both parties waited to “win” the November 2012 elections. • Behind the scenes, however, Congressional tax committees held hearings and laid the foundation for a tax reform effort…work which continues this year. • Congressional Republicans insist on revenue-neutral tax reform for both individuals and businesses. The President insists on revenue-neutral corporate tax reform, but wants an additional $800 billion to $1 trillion from upper-income individuals. • These divergent goals lead most observers to conclude that the fate of tax reform is tied inextricably to a larger budget agreement. The Nickles Group, LLC

  13. Tax Reform - House • House Republicans are pursuing tax reform that would: • Lower the top individual and corporate tax rates to 25% and broaden the tax base, • Shift to a territorial system of taxation for U.S. multinationals, and • Maintain revenue growth consistent with historical norms of 18 to 19 percent of GDP • The Ways & Means Committee and it’s Chairman Dave Camp (R-MI) have done more than anyone else to advocate and prepare for tax reform with the release of three detailed tax reform discussion drafts: • International • Financial products (derivatives) • Small business / pass through entities • Chairman Camp and Ranking Member Sander Levin (D-MI) have also formed bipartisan working groups that are tasked with examining various areas of the tax code and soliciting input from stakeholders, academics, practitioners, and the general public. The Nickles Group, LLC

  14. Tax Reform - Senate • In the Senate, Finance Chairman Max Baucus (D-MT) and ranking member Orrin Hatch (R-UT) are hosting tax reform meetings for their members and discussing options. • The recently-passed Senate budget resolution called for an additional $1 trillion in new revenue from tax reform that “simplifies the tax code, increases fairness, generates economic growth, and improves the competitive position of U.S. businesses.” • Interestingly…Chairman Baucus did not vote for the Senate budget… The Nickles Group, LLC

  15. Tax Reform - President • In February 2012 Treasury released “The President’s Framework for Business Tax Reform”, which suggested: • Lowering the corporate rate from 35% to 28%, • Continuation of the worldwide system of taxation for multinationals including the imposition of a new “minimum” tax on foreign income, and • Consideration of a business-level tax on large pass-through entities. • The President’s new budget released last week called for “revenue-neutral” business tax reform, and included $95 billion in specific business tax increases that could be used to reduce rates. • Altogether, the President’s budget included $1.1 trillion of net new tax increases over ten years. The Nickles Group, LLC

  16. Tax Reform – Major Expenditures Individual & corporate, revenue loss over ten years: • Health insurance/expenses $1.301 trillion • Retirement plans $1.032 trillion • Mortgage interest $640 billion • Capital gains preferential rate $331 billion • Charitable deduction $319 billion • State & local tax deduction $292 billion • Accelerated depreciation $274 billion • Deferral foreign income $220 billion • Municipal bond interest $178 billion • Domestic manufacturing deduction $75 billion The Nickles Group, LLC

More Related