Text extracted via OCR from the original document. May contain errors from the scanning process.
Tax
There is a push to include the provisionsthat expire at the
end of 2016 in year-end legislation, though if that is
unsuccessful the issue will certainly return in 2017, either
through inclusion in a tax reform measureor separately if
those efforts have played out.
The 2015 tax legislation made some extender provisions
permanent and extended others for five years, meaning
the two-year extensions that expire at the end of 2016
will be the focus of the next effort.
There will certainly be attention paid to these provisions
during any discussion of tax extenders in 2017.
Tax treaties. Action on the eight Foreign Relations
Committee-approved tax treaties that Senator Rand Paul
(R-KY) wants renegotiated over information sharing
concerns is seen as overdue. The treaties include: new
protocols amending US tax treaties with Switzerland,
Luxembourg, Spain and Japan; new tax treaties with
Hungary, Chile and Poland; and a multilateral convention
on tax administration. There have been no plans
announced for trying to move the treaties during the
lame-duck session, though such an effort is possible.
State tax issues. In August, House Judiciary Committee
Chairman Goodlatte released a second discussion draft
related to remote sales tax that would apply tax at the
destination state of the goods, rather than on the location
of the seller, which was his previous approach. The tax
would be imposed at a single rate determined by the state
of the purchaser, but using the tax base of the state of
origin.
Chairman Goodlatte wanted a vote this year on the
proposal, which had the support of Speaker Ryan, but this
vote is not likely to occur during the lame duck session.
When Congress approved a customsreauthorization
measure that made permanent the Internet Tax Freedom
Act in February, Senate Majority Leader McConnell said
he had provided assurances to supporters of the
Marketplace FairnessAct “that we'll have an opportunity
to consider that sometime this year.” Since that is not
likely to occur during the lame-duck session, the issue is
sure to resurface in 2017.
In September, the House approved by voice vote the
Mobile Workforce State Income Tax Simplification Act
(H.R. 2315), to prohibit wages earned by an employee
who performs employment duties in more than one state
from being subject to income tax in any state other than:
(1) the state of the employee’s residence, and (2) the
state within which the employee is present and
performing employment duties for more than 30 days
during the calendar year. Senate Finance Committee
member John Thune (R-SD) sponsors a Senate version of
the bill (S. 386), though the outlook for the issue is
unclear.
EY 16
| Election 2016
HOUSE_OVERSIGHT_022388