09 October 2017 Law firm clients: Federal tax reform framework has state tax implications The "Unified Framework for Fixing Our Broken Tax Code" (the Framework), released on September 27, 2017, by the Trump Administration and congressional Republican leaders, is meant to serve as a legislative template for federal tax-writing committees. The legislative priorities listed in the Framework are intended to simplify the US federal income tax code and lower corporate and individual income tax rates. The tax rate applied to the business income of pass-through entities, like partnerships, under the Framework would be limited to 25%. A new EY Tax Alert focusing on the US state and local (collectively, state) tax implications of the Framework points out that federal tax reform will affect states, unless they change their income tax laws, because state income tax systems generally "are inextricably tied to the federal income tax system." For details, see Tax Alert 2017-1619. Document ID: 2017-1663 |
