This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here. favicon LAWANDTAX-NEWS.COM
HOME | CONTACT | RECRUITMENT | ABOUT | LEGAL | PRIVACY & COOKIES Join us on Twitter Lowtax Facebook page Join our discussion on LinkedIn Join us on Google+ Delicious Subscribe to the Tax-News RSS Feed


Articles »

Country Home Pages

British Virgin Islands
Hong Kong
Isle of Man
South Africa

Daily Tax Quote

Lowtax Network Sites
Lowtax Network Portal: 'Low-tax' business and investment in the top 50 jurisdictions covered in exceptional detail.
Tax News: Global tax news, continuously updated through the day.
Expat Briefing: A free online publication serving international expatriates and featuring world news, forums, events, in-depth country information and reliable investment and personal taxation guides.
Law & Tax News: Daily news and background data on tax and legal developments for international business.
Offshore-e-com: A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library: One of the web's largest and most authoritative business and investment information sources.
US Tax Network: The resource for free online US taxation information, covering: corporate tax, individual tax, international tax, expatriates, sales and e-commerce tax, investment tax.
Offshore Trusts Guide: OTG publishes news, features and newsletters on the use of offshore trust structures.
TreatyPro: Online tax treaty resource.
Global Incorporation Guide [GIG]: A BSI / Lowtax Network international business smart tool.
Study Looks At US Tax Reform Revenue Gap

by Mike Godfrey,, Washington Thursday, July 13, 2017

The Tax Policy Center (TPC) has said the Trump Administration's plan for tax reform could reduce federal revenues by as much as USD7.8 trillion over the next decade.

The TPC modeled tax cuts which were "consistent with those the Trump Administration outlined in April." This is the figure if revenue-raisers are not included. During the second decade, the cost to revenues would be USD13.1 trillion, it said.

The TPC noted that it "could not model an actual Trump tax plan since far too many critical details are unknown," but was able to model "a stylized version of what the key elements of a Trump plan might look like." This included: a tax rate of 15 percent on businesses, including pass-throughs; a territorial tax system; a one-time tax on unrepatriated foreign earnings; reduced individual income tax rates; a doubling of the standard deduction; and repeal of the Alternative Minimum Tax, estate tax, and the 3.8 percent Medicare surtax.

However, even when accounting for tax increases included in the April outline and those suggested by Donald Trump during the 2016 Presidential campaign, the TPC estimated that the plan would be far from revenue neutral. These measures included repealing all itemized deductions except for charitable giving and mortgage interest, repealing the personal exemption and head of household filing status, repealing certain business tax preferences, a tax on capital gains at death, and a tax on distributions from pass-throughs.

Including these revenue-raisers would cut the revenue cost of reform to USD3.4 trillion over the first decade and USD5.9 trillion in the second.

In addition to the impact on revenue, TPC analyzed the effects on households. "A Trump-like tax plan would be highly regressive with or without the revenue raisers," said Howard Gleckman, a senior fellow at the TPC, adding that there would be "moderate tax cuts for low- and moderate-income households and big tax reductions for the highest-income households."

However, according to Gleckman, not everybody would experience a tax cut under the President's proposals. "Interestingly, with the revenue raisers, about 20 percent of households would face higher taxes than under current law," he concluded.


One of the web's largest and most authoritative business and investment information sources. Alongside topical, daily news on worldwide tax developments, you can receive weekly newswires or access up-to-date intelligence reports on a range of legal, tax and investment subjects.


Our 16 constantly updated intelligence reports cover every important aspect of 'offshore' and international tax-planning in depth, including banking secrecy, the EU's savings tax directive, offshore funds, e-commerce, offshore gaming and transfer pricing. Reports are available for immediate downloading or as subscription services with news pages.

Advertising & Marketing

With over 50,000 qualified readers every month our web-sites offer a number of cost effective, targeted advertising, sponsorship and marketing opportunities:

Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings

Click here to learn more or contact Charles Bell on +44 (0)1424 205 425 or at and he will put you in touch with your regional rep.

News & Content Solutions

Could your corporate web-site or newsletter benefit from incorporating regularly updated news and content tailored to serve your clients' interests? We can provide a variety of maintenance-free news and content solutions that can be seamlessly integrated and dynamically delivered:

Customised, personalised 'own-brand' news services
Newsletter content and management
News Headlines Tickers

Click here to learn more or contact Charles Bell on +44 (0)1424 205 425 or at and he will put you in touch with your regional rep.

Important Notice: Wolters Kluwer TAA Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.

All rights reserved. © 2017 Wolters Kluwer TAA Limited

All content on this site has been provided by BSIRN.