blueprint is expected to be one of the last ones TAX released. Senate Finance Committee Holds Hearing JCT Official Says Treasury Inversion Rules on Debt-Equity Aspects of Corporate Are Not Long Term Solution Integration; Ways and Means Holds Hearing on Tax Reform Key Points: JCT’s legislative counsel said that the Treasury Key Points: inversion rules will not be the “ultimate The hearing was the second in a series and solution” for stopping inversions. focused on issues around debt versus equity distinction and incentives in the tax code. Viva Hammer, the legislative counsel for the Joint Committee on Taxation, said that the The House Ways and Means Committee’s inversion rules recently issued by the Tax Policy Subcommittee continues to focus on Department of the Treasury will not be able to comprehensive tax reform policy stop corporate inversions from occurring. She implied that Congress will need to act to make The Senate Finance Committee held the structural reforms to the international tax code second hearing of a series focused on corporate to ultimately halt the behavior. She also integration. The hearing examined issues expressed uncertainty that comprehensive tax around debt versus equity distinction. Former reform could occur without the U.S. shifting to Joint Committee on Taxation (JCT) Chief of a territorial system. Staff John Buckley, who testified at the hearing, suggested that corporate integration could For more information about tax issues you may or call violate U.S. tax treaties, explaining that many shareholders are foreign investors who pay Christopher Hatcher at 202-659-8201. Laura either no taxes or a reduced tax rate because of Simmons contributed to this section. treaties. FINANCIAL SERVICES Details of GOP Tax Reform Blueprint Begin to be Shared Senate Banking Committee Holds Hearings on the Iran Sanctions Deal Key Points: Key Points: House Republicans are expected to release a tax reform blue print by the end of June that Republican Senators raised concerns that the may contain proposals discussed during House Administration is encouraging foreign banks Ways and Means Committee Members’ day to do business with Iran. Senators also hearings. expressed concern that the Administration is exceeding its requirements under the JCPOA Speaker Paul Ryan (R-WI) told the Republican by encouraging foreign firms to do business in Caucus that each of the GOP Policy Task Iran. Forces’ blue prints will be released on a weekly basis following the upcoming recess. The tax
TAX Senate Finance Committee Holds Hearing on Debt-Equity Aspects of Corporate Integration; Ways and Means Holds Hearing on Tax Reform Key Points: The hearing was the second in a series and focused on issues around debt versus equity distinction and incentives in the tax code. The House Ways and Means Committee’s Tax Policy Subcommittee continues to focus on comprehensive tax reform policy The Senate Finance Committee held the second hearing of a series focused on corporate integration. The hearing examined issues around debt versus equity distinction. Former Joint Committee on Taxation (JCT) Chief of Staff John Buckley, who testified at the hearing, suggested that corporate integration could violate U.S. tax treaties, explaining that many shareholders are foreign investors who pay either no taxes or a reduced tax rate because of treaties. Details of GOP Tax Reform Blueprint Begin to be Shared Key Points: House Republicans are expected to release a tax reform blue print by the end of June that may contain proposals discussed during House Ways and Means Committee Members’ day hearings. Speaker Paul Ryan (R-WI) told the Republican Caucus that each of the GOP Policy Task Forces’ blue prints will be released on a weekly basis following the upcoming recess. The tax blueprint is expected to be one of the last ones released. JCT Official Says Treasury Inversion Rules Are Not Long Term Solution Key Points: JCT’s legislative counsel said that the Treasury inversion rules will not be the “ultimate solution” for stopping inversions. Viva Hammer, the legislative counsel for the Joint Committee on Taxation, said that the inversion rules recently issued by the Department of the Treasury will not be able to stop corporate inversions from occurring. She implied that Congress will need to act to make structural reforms to the international tax code to ultimately halt the behavior. She also expressed uncertainty that comprehensive tax reform could occur without the U.S. shifting to a territorial system. For more information about tax issues you may or call Christopher Hatcher at 202-659-8201. Laura Simmons contributed to this section. FINANCIAL SERVICES Senate Banking Committee Holds Hearings on the Iran Sanctions Deal Key Points: Republican Senators raised concerns that the Administration is encouraging foreign banks to do business with Iran. Senators also expressed concern that the Administration is exceeding its requirements under the JCPOA by encouraging foreign firms to do business in Iran.
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