EY commentary on Congressional leaders' joint statement on tax reform

WASHINGTON, July 27, 2017 /PRNewswire/ -- The "Big Six" group of Administration and congressional negotiators today issued a statement on tax reform that largely affirms previously stated goals for the effort but newly states that the group will not be considering the House border adjustability proposal.

"The decision to move away from the border adjustment tax is a huge development as it removes a very controversial element from the House Republican plan and it makes agreement on a comprehensive tax reform plan much more likely," said Michael Mundaca, co-director of Ernst & Young LLP's National Tax Department.

"Now that border adjustments are off the table, it is likely that the main focus of the debate will shift to whether tax reform will be revenue neutral, what cost recovery rules will be adopted, whether business interest deductions will be limited, what base erosion provisions will be included, and what middle class tax relief will be provided," added Eric Solomon, co-director of Ernst & Young LLP's National Tax Department.

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