Caution on Trump tax plans

Business leaders are skeptical of Congressional predictions that President Donald Trump’s promised US tax reform will come by this summer.

More than half (53%) predict that significant business tax reform will not arrive until 2018, according to a recent poll by US audit and tax firm KPMG.

Only 16% of more than 1,000 respondents polled during a recent webcast expect tax reform to be achieved this year. In addition, 11% do not expect reform until 2019, and nearly one quarter (21%) are unsure of the timing.

When asked which of the proposals in the current House Republican tax plan would have the greatest anticipated impact on their business, 41% cited the new reduced corporate tax rate structure.

During his election campaign, Trump repeatedly stated he would cut the US rate from its current high of 35% to just 15%, in a bid to attract US multinationals to onshore their profits.

From an industry perspective, respondents from the retail and industrial manufacturing sectors selected the controversial border tax adjustment proposal as likely to have the greatest impact on their organizations, at 38% and 37%, respectively. Trump has proposed a 20% tax on imports.

John Gimigliano, principal in charge of federal tax, legislative and regulatory services in the Washington national tax practice of KPMG, said: “Developments on the tax reform front could evolve quickly.

“That’s why business leaders need to stay engaged, consider how the House GOP Blueprint may affect them, and be ready to respond quickly as tax reform advances through the legislative process.”