Will C Corporations Become the New Entity of Choice?
President Trump campaigned on a platform of large tax cuts for businesses. Since his election, tax reform has been one of the most important agenda items for him and Republicans in Congress. A key component of their proposed tax reform is a dramatic cut in the tax rate on C corporations.1 The corporate rate cut was a centerpiece of President Trump’s tax plan during his campaign, of the House Republican Blueprint for Tax Reform released in June 2016 by House Speaker Paul Ryan (R-WI) and House Ways and Means Committee Chair Kevin Brady (R-TX), and most recently, of the Unified Framework for Tax Reform released on September 27 by the “Big Six”—House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steven Mnuchin, White House adviser Gary Cohn, House Ways & Means Committee Chairman Kevin Brady (R-TX), and Senate Finance Committee Chairman Orrin Hatch (R-UT). The Unified Framework, which will be the basis of negotiations on tax reform, proposes a federal income tax rate for corporations of 20%. Read more.