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Jeff Paravano Quoted as Part of In-Depth Analysis of Tax Reform Framework

News / October 10, 2017

Partner Jeff Paravano’s remarks to Tax Analysts are quoted in a news analysis published Oct. 10, 2017, in Tax Notes. The analysis, “Tax Reform in Development Testing,” discusses the recently-released Republican tax reform framework and possible scenarios for enactment.

Addressing options for reforming business taxes, Paravano said, “While immediate expensing is helpful to incentivize investment, that tax benefit is one of mere timing, while any limitations on interest deductibility relating to that expensing would be permanent. Large corporate taxpayers generally are not interested in trading timing benefits for permanent detriments.” He argued that expensing should be elective if tied to any interest deduction limitations.

In connection with proposed international taxation changes, Paravano said, “Many are advocating that Congress be more protective of U.S.-based corporate world leadership by dropping the proposed minimum tax. All other things being equal, Congress should adopt tax reform laws that discourage inversions by removing economic compulsion to be headquartered outside of the United States.” He suggested that U.S. companies would move their headquarters or become attractive targets for foreign buyers if only companies headquartered in the United States are subject to a minimum tax on income earned abroad.

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