2014 Cha irma n Ca mp s T a x Pro po sa l T ax Update Curre nt - - PDF document

6/9/2014 1

2014 T ax Update

Ro b e rt W. He nry

Age nda

• T

he “T a ng ib le Pro pe rty Re g ula tio ns”

• U.S. T

a x Ra te s & I nve rsio n T ra nsa c tio ns

• Cha irma n Ca mp’ s T

a x Pro po sa l

• Curre nt Sta tus o f T

a x E xte nde rs

• Que stio ns

2

T HE “T ANGIBL E PR OPE R T Y R E GUL AT IONS”

T angible Pr

• pe r

ty R e gulations

• Ma te ria ls & Supplie s
• De minimis c a pita liza tio n thre sho ld
• Ro ta b le spa re pa rts
• Pa rtia l dispo sitio ns
• Building “syste ms”
• E

ffe c tive in full a s o f 1/ 1/ 2014

• Ac c o unting me tho d c ha ng e ma y b e

re q uire d to c o nfo rm.

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6/9/2014 2

T angible Pr

• pe r

ty R e gulations

• Re v. Pro c s. 2014-16 a nd 2014-17

– Pro vide a uto ma tic a c c o unting me tho d c ha ng e s fo r ma ny o f the ite ms a ddre sse d in the ne w Re g s. – All ta xpa ye rs will ne e d to c o nside r the po te ntia l fo r a n a c c o unting me tho d c ha ng e unde r the se Re g s. – Wa tc h fo r misste ps b y a do ptio n o f a n a c c o unting me tho d b y me re ly tre a ting a n ite m a c e rta in wa y o n yo ur 2014 ta x re turn.

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U.S. T AX R AT E S & INVE R SION T R ANSACT IONS

U.S. T ax R ate s & Inve r sion T r ansac tions

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U.S. T ax R ate s & Inve r sion T r ansac tions

• U.S. Inte rna tio na l T

a x Sc he me in Ge ne ra l – “Wo rldwide T

a xa tio n” – If He a dq ua rte re d (HQ) in the U.S., ta xe d o n wo rldwide inc o me .

• Co mpa nie s c re a te o ffsho re sub sidia rie s to ho use

pro fits a nd de fe r U.S. ta xa tio n.

• T

a xa tio n trig g e re d upo n re pa tria tio n o f the e a rning s.

– Prio r “re pa tria tio n ho lida ys” ma y no t ha ve a c hie ve d muc h in the wa y o f jo b s c re a tio n o r dire c t U.S. inve stme nt, b ut prima rily ha ve b e e n use d to fund de b t pa y-do wn o r re turns to sha re ho lde rs.

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U.S. T ax R ate s & Inve r sion T r ansac tions

• Ma jo rity o f the OE

CD utilize s a “te rrito ria l ta x” sc he me . – All inc o me e a rne d within the b o rde rs o f the

ta xing jurisdic tio n is dire c tly a nd c urre ntly ta xe d, re g a rdle ss o f the do mic ile o f the ta xpa ye r. – Inc o me e a rne d in o the r jurisdic tio ns o utside the b o unda rie s o f the ta xpa ye r’ s do mic ile is no t ta xe d upo n re pa tria tio n.

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U.S. T ax R ate s & Inve r sion T r ansac tions

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So urc e : Se na te Re pub lic a n Po lic y Co mmitte e

U.S. T ax R ate s & Inve r sion T r ansac tions

• F

a vo rite Quo te

– “T he Na tio n sho uld ha ve a ta x syste m tha t lo o ks like so me o ne de sig ne d it o n purpo se .” – Willia m Simo n, F

• rme r U.S. T

re a sury Se c re ta ry – With the c urre nt wo rldwide ta xa tio n sc he me full o f de fe rra l a nd e xpa tria tio n mo tiva to rs, a te rrito ria l syste m se e ms to b e tte r fit the b ill o f a “syste m tha t lo o ks like so me o ne de sig ne d it

• n purpo se .”

11

U.S. T ax R ate s & Inve r sion T r ansac tions

• Pfize r / Astra Ze ne c a

– Pfize r b id to me rg e with Astra Ze ne c a in o rde r to , a mo ng ma ny o the r stra te g ic o b je c tive s, do mic ile HQ in the UK . – Pfize r pulle d $118B b id (30% pre mium to pre - a nno unc e me nt sto c k pric e ) a nd pla ns no ho stile ta ke o ve r b id. – Inc o me ta x sa ving s we re a sig nific a nt c o nside ra tio n in the stra te g ic pla n fo r this ta ke o ve r b id.

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U.S. T ax R ate s & Inve r sion T r ansac tions

• Va le a nt Pha rma c e utic a ls I

nc . / Alle rg a n I nc .

– Va le a nt la unc he d a ho stile b id fo r Alle rg a n inte nding to e xpa tria te Alle rg a n’ s HQ fro m the U.S. to Ca na da , Va le a nt’ s c o untry o f do mic ile . – T he fa vo ra b le ta x c o nse q ue nc e s o f the de a l we re a ma jo r po int a rg ue d in the ho stile b id. – Va le a nt c la ims the de a l wo uld re sult in a “[h]ig h sing le -dig it ta x ra te fo r c o mb ine d c o mpa ny in a dditio n to c o st syne rg ie s.” – Alle rg a n re spo nds tha t “Va le a nt’ s multiple o ffsho re ta x de fe rra l struc ture s a re a g g re ssive , diffic ult to susta in a nd c o mpo und risk in multiple jurisdic tio ns.”13 U.S. T ax R ate s & Inve r sion T r ansac tions

• “…it’ s like ly tha t the hug e g a p b e twe e n

US a nd fo re ig n ta x ra te s will re sult in Ame ric a lo sing a n hug e c o rpo ra te c itize n b e fo re po litic o s g e t se rio us a b o ut so lving the pro b le m.” – K e vin Chupka writing fo r fina nc e .ya ho o .c o m.

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CHAIR MAN CAMP’S T AX PR OPOSAL

Chair man Camp’s T ax Pr

• posal
• T

he “T a x Re fo rm Ac t o f 2014”

• Whe w! Wha t a Bill this is

– 979 pa g e s o f ta x re fo rm – 190 pa g e s o f “summa ry” o f the Bill – Addre sse s virtua lly e ve ry a spe c t o f c urre nt U.S. ta x la w

• Yo u will no t re c o g nize the ne w ta x

c o d e if this Bill b e c o me s la w.

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Chair man Camp’s T ax Pr

• posal
• Ca mp’ s a rg ume nts fo r his pla n

– JCT e stima te s the to ta l pa c ka g e wo uld no t a dd to the b udg e t de fic it. – Cre a tio n o f 1.8 millio n ne w priva te se c to r jo b s. – Allo ws ro ug hly 95% o f ta xpa ye rs to g e t the lo we st po ssib le ta x ra te b y simply c la iming the sta nda rd de duc tio n. – Stre ng the ns the e c o no my a nd inc re a se s GDP b y $3.4 trillio n (20% o f to da y’ s GDP)

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Chair man Camp’s T ax Pr

• posal
• I

ndividua l I nc o me T a x Cha ng e s

– T

• o ma ny to c o ve r in this pre se nta tio n, so we

will hit the hig h po ints. – So me sa c re d c o ws survive – Individua l ra te s a re “simplifie d” – Ma ny c re dits re pe a le d – IRAs, SE Ps a nd Simplifie d 401(k)s fa c e multiple c ha ng e s

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Chair man Camp’s T ax Pr

• posal
• Sa c re d Co ws – T

he Go o d

– Mo rtg a g e Inte re st de duc tib le o n inde b te dne ss up to $500,000 – Child ta x c re dit inc re a se d a nd e xpa nde d – Sta nda rd de duc tio n inc re a se d to $22,000 (MF J) / $11,000 (sing le ) with pha se -o ut pro visio ns still in pla c e . – Cha rita b le c o ntrib utio ns ma de until due da te

• f re turn a re de duc tib le (sub je c t to 2% flo o r)

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Chair man Camp’s T ax Pr

• posal
• I

ndividua l T a x Ra te s

– Curre nt struc ture

• Se ve n inc o me b ra c ke ts ra ng ing fro m 10% to

39.6%

• Ne t inve stme nt inc o me ta x o f 3.8% fo r inc o me
• ve r $250,000.
• Divide nds a nd c a pita l g a ins a t 0%, 15%, o r 20%

de pe nding o n re g ula r inc o me ta x b ra c ke t.

• Ra te s o f 25% a nd 28% o n unre c a pture d Se c tio n

1250 g a ins

• Ite mize d de duc tio n a nd pe rso na l e xe mptio n

pha se o ut le ve ls diffe r fro m inc o me ta x b ra c ke t le ve ls.

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Chair man Camp’s T ax Pr

• posal
• I

ndividua l T a x Ra te s

– Ca mp Pro po sa l

• T

hre e ta x b ra c ke ts o f 10%, 25% a nd 35% – Inc o me thre sho ld fo r the 35% b ra c ke t wo uld mirro r

tha t o f the c urre nt 39.6% b ra c ke t. – Inc o me b ra c ke ts ind e xe d to “c ha ine d CPI” inste a d

• f CPI
• Spe c ia l ra te struc ture fo r divide nds a nd c a pita l

g a ins re pla c e d with a n a b o ve the line de duc tio n e q ua l to 40% o f ne t c a pita l g a ins a nd q ua lifie d divide nds.

• Qua lifie d do me stic ma nufa c turing inc o me sub je c t

to a to p ra te o f 25%.

• Pha se o uts still in pla y.
• JCT

e stima te s a 10-ye a r c o st o f $498.7 b illio n

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Chair man Camp’s T ax Pr

• posal
• Cha ng e s to the E

I T C

– Pro po sa l wo uld ma ke c re dita b le o nly e mplo yme nt re la te d ta xe s pa id b y o r o n b e ha lf o f the ta xpa ye r. – Va rio us thre sho lds in pla c e to c la im this re funda b le c re dit. – JCT e stima te s a 10-ye a r ne t re duc tio n to

• utla ys (spe nding ) o f $218 b illio n.

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Chair man Camp’s T ax Pr

• posal
• Re pe a l o f the “pe rso na l e xe mptio n”

– Be ne fits fo r ta xpa ye r a nd spo use “c o nso lida te d” into the la rg e r sta nda rd de duc tio n – Be ne fits fo r ta xpa ye r de pe nde nts c o nso lida te d into e xpa nde d c hild a nd de pe nde nt ta x c re dit. – JCT e stima te s ne t inc re a se in re ve nue o f $731 b illio n

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Chair man Camp’s T ax Pr

• posal
• E

duc a tio n T a x Be ne fits

– Curre ntly the re a re o ve r 15 diffe re nt e duc a tio n-re la te d ta x b e ne fits. – T he c urre nt fo ur hig he r e duc a tio n ta x c re dits wo uld b e c o nso lida te d into o ne “Ame ric a n Oppo rtunity T a x Cre dit”. – Ho pe Sc ho la rship Cre dit, L ife time L e a rning Cre dit a nd tuitio n de duc tio n wo uld b e re pe a le d. – Cha ng e in o rde ring rule s fo r Pe ll Gra nts – JCT e stima te s a ne t c o st o f $9 b illio n

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Chair man Camp’s T ax Pr

• posal
• E

duc a tio n T a x Cha ng e s

– Re pe a l o f de duc tio n o f inte re st o n stude nt lo a ns, whic h is c urre ntly a n a b o ve the line de duc tio n. – Re pe a l o f e xc lusio n o f inc o me fro m US sa ving s b o nds use d to pa y hig he r e duc a tio n e xpe nse s. – Re pe a l o f e xc lusio n fo r disc ha rg e o f stude nt lo a n inde b te dne ss. – Re pe a l o f e xc lusio n fo r q ua lifie d tuitio n re duc tio ns

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Chair man Camp’s T ax Pr

• posal
• Cha ng e s to individua l ta x c re dits a nd

inc e ntive s

– Re pe a l o f c re dit fo r re side ntia l e ne rg y e ffic ie nt pro pe rty ($2.8 b illio n in re ve nue ) – Re pe a l o f c re dit fo r q ua lifie d e le c tric ve hic le s (no impa c t) – Cha ng e s to re c o g nitio n o f g a in fro m sa le o f princ ipa l re side nc e .

• Must o c c upy re side nc e fo r 5 o f prio r 8 ye a rs a s

princ ipa l re side nc e fo r e xc lusio n o f g a in.

• Ga in e xc lusio n pha se d o ut fo r inc o me o ve r

$500,000

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Chair man Camp’s T ax Pr

• posal
• Cha ng e s to individua l ta x c re dits a nd

inc e ntive s

– De duc tio n o f mo rtg a g e inte re st limite d to inde b te dne ss o f $500,000 – Cha ng e s to de duc tio n o f c ha rita b le c o ntrib utio ns – Re pe a l o f de duc tio n o f sta te a nd lo c a l ta xe s – Re pe a l o f de duc tio n fo r me dic a l e xpe nse s – T e rmina tio n o f de duc tio n a nd e xc lusio n fo r c o ntrib utio ns to me dic a l sa ving s a c c o unts

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Chair man Camp’s T ax Pr

• posal
• Cha ng e s to individua l ta x c re dits a nd

inc e ntive s

– Re pe a l o f 2% flo o r o n c e rta in de duc tio ns – Re pe a l o f limita tio ns/ pha se o ut o f ite mize d de duc tio ns – Co nsiste nc y in de finitio n o f “se lf e mplo yme nt” inc o me

• S Co rpo ra tio n sha re ho lde rs sub je c t to SE

CA o n distrib utive sha re

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Chair man Camp’s T ax Pr

• posal
• Cha ng e s to individua l ta x c re dits a nd

inc e ntive s

– Re pe a l o f inc o me limita tio n o n c o ntrib utio n to Ro th IRAs a nd no furthe r c o ntrib utio ns to tra ditio na l IRAs pe rmitte d ($17.9 b illio n in re ve nue ) – Re pe a l o f individua l a nd c o rpo ra te AMT (1,442 b illio n c o st)

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– 25% fla t c o rpo ra te ta x ra te pha se d in to full e ffe c t in 2019 ($680.3 b illio n c o st) – Re pe a l o f MACRS de pre c ia tio n sc he me

• Mo ve to sc he me mo re c o nsiste nt with ADS

stra ig htline de pre c ia tio n

• Re pe a l o f b o nus de pre c ia tio n
• Re pe a l o f spe c ia l de pre c ia tio n pro visio ns fo r

India n Re se rva tio n pro pe rty

• Inc re a se to re ve nue o f $269 b illio n

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– NOL c a rryo ve r o r c a rryb a c k limite d to 90% o f ta xpa ye r inc o me . ($70.5 b illio n in re ve nue ) – Re q uire d a mo rtiza tio n o f “R&D” e xpe nditure s tha t a re c urre ntly de duc tib le unde r Se c tio n 174 ($192.6 b illio n in re ve nue ) – 50% o f a dve rtising e xpe nse s re q uire d to b e a mo rtize d o ve r 10-ye a rs. ($169 b illio n in re ve nue ) – Se c tio n 179 limita tio ns inc re a se d to $250k de duc tib le with pha se o ut b e g inning a t $800k in c a pita l inve stme nt. (Co st o f $54.9 b illio n)

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– 20-ye a r a mo rtiza tio n pe rio d fo r g o o dwill a nd

• the r “Se c tio n 197” inta ng ib le s. ($13 b illio n in

re ve nue ) – Re pe a l o f Se c tio n 199 de duc tio n fo r do me stic ma nufa c turing a c tivitie s. ($115 b illio n in re ve nue ) – Re pe a l o f pe rc e nta g e de ple tio n. ($5.3 b illio n in re ve nue ) – Re pe a l o f like -kind-e xc ha ng e s

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6/9/2014 9

Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– Re se a rc h c re dit mo difie d a nd ma de pe rma ne nt

• Ma ke s the a lte rna tive simplifie d c re dit me tho d

pe rma ne nt a t 15% o f q ua lifie d e xpe nditure s e xc e e ding the b a se .

• Re pe a l o f the 280C e le c tio n
• $34.1 b illio n c o st

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– Re pe a l o f WOT C (no impa c t) – Ca sh me tho d a va ila b le to a ll c o mpa nie s with g ro ss re c e ipts unde r $10 millio n ($23.6 b illio n in re ve nue ) – L imita tio n o f use o f Co mple te d Co ntra c t Me tho d fo r lo ng -te rm pro je c ts ($6.5 b illio n in re ve nue ) – Re pe a l o f L IF O

• L

IF O re se rve inc lude d in ta xa b le inc o me o ve r 4-ye a rs

• Clo se ly he ld e ntitie s (100 o r fe we r sha re ho ld e rs) o nly

ta xe d a t 7% o n L IF O re se rve re c o g nitio n

• $79.1 b illio n in re ve nue

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– Re pe a l o f “lo we r o f c o st o r ma rke t” inve nto ry me tho d. ($3.8 b illio n in re ve nue ) – Re duc e d (5-ye a r) pe rio d fo r S Co rp re c o g nitio n o f b uilt in g a ins ma de pe rma ne nt. (c o st o f $3 b illio n) – Re pe a l o f pa rtne rship te c hnic a l te rmina tio n rule s. ($.5 b illio n in re ve nue ) – “Ca rrie d inte re st” inc o me tre a te d a s o rdina ry inc o me . ($3.1 b illio n in re ve nue )

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Chair man Camp’s T ax Pr

• posal
• Busine ss T

a x Re fo rm

– T E F RA a nd E L P a udit rule s re pe a le d a nd stre a mline d into sing le pa rtne rship le ve l a udit. ($13.4 b illio n in re ve nue ) – Pro fe ssio na l spo rts le a g ue s (NF L , NBA, e tc .) lo se ta x e xe mpt sta tus. ($.1 b illio n in re ve nue ) – Cha ng e s to ta x re turn due da te s

• Pa rtne rship o r S c o rpo ra tio n re q uire d to file b y

3/ 15

• C c o rpo ra tio n re q uire d to file b y 4/ 15

– Auto ma tic 6-mo nth e xte nsio n fo r C c o rpo ra tio ns

– Re pe a l o f me dic a l de vic e e xc ise ta x

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6/9/2014 10

CUR R E NT ST AT US OF T AX E XT E NDE R S

T ax E xte nde r s

• Ho use ta x e xte nde rs pa c ka g e

– On April 29, 2014, Ho use Wa ys a nd Me a ns a ppro ve d six se pa ra te e xte nde r b ills to pe rma ne ntly e xte nd c e rta in pro visio ns o f the c o de tha t e xpire d a s o f 12/ 31/ 13. – No ne o f the b ills c o nta in re ve nue o ffse ts. – De mo c ra ts do no t a ppe a r willing to a c c e pt a ny e xte nde r le g isla tio n tha t la c ks re ve nue

• ffse ts to he lp pa y fo r ma king pe rma ne nt

the se ta x pro visio ns.

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T ax E xte nde r s

• H.R. 4429

– Pe rma ne nt Ac tive F ina nc ing E xc e ptio n Ac t o f 2014

• Ma ke s pe rma ne nt the sub pa rt F

fo re ig n pe rso na l ho lding c o mpa ny inc o me e xe mptio n fo r inc o me tha t is de rive d in the a c tive c o nduc t o f a b a nking , fina nc ing , o r simila r b usine ss, a s a se c uritie s de a le r, o r in the c o nduc t o f a n insura nc e b usine ss.

• Co st o f $59 b illio n

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T ax E xte nde r s

• H.R. 4438

– Ame ric a n Re se a rc h a nd Co mpe titive ne ss Ac t o f 2014

• E

nha nc e s a nd ma ke s pe rma ne nt the R&D ta x c re dit

• Only o f the six e xte nde r b ills to re c e ive

De mo c ra t suppo rt

• Co st o f $156 b illio n

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6/9/2014 11

T ax E xte nde r s

• H.R. 4453

– Pe rme ne nt S Co rpo ra tio n Built-in Ga ins Re c o g nitio n Pe rio d Ac t o f 2014

• Pe rma ne ntly re duc e s fro m 10 to 5 ye a rs the

pe rio d during whic h the b uilt-in g a ins o f a nd S c o rpo rtio n a re sub je c t to ta x.

• Co st o f $1.5 b illio n

41

T ax E xte nde r s

• H.R. 4457

– Ame ric a ’ s Sma ll Busine ss T a x Re lie f Ac t o f 2014

• Ma ke s pe rma ne nt the fo llo wing limita tio ns fo r

c urre nt e xpe nsing o f c e rta in c a pita l purc ha se s

– Up to $500,000 ma y b e e xpe nse d – Amo unt o f e xpe nse a llo we d pha se d o ut if to ta l c a pita l e xpe nd iture s e xc e e d $2 millio n.

• Infla tio n a djuste d limita tio ns
• Co st o f $73 b illio n

42

T ax E xte nde r s

• H.R. 4464

– Pe rma ne nt CF C L

• o k-T

hro ug h Ac t o f 2014

• Ma ke s pe rma ne nt the ta x rule e xe mpting

divide nds, inte re st, re nts, a nd ro ya ltie s re c e ive d o r a c c rue d fro m c e rta in c o ntro lle d fo re ig n c o rpo ra tio ns b y a re la te d e ntity fro m tre a tme nt a s fo re ig n ho lding c o mpa ny inc o me (thus pe rmitting ta x de fe rra l o f suc h inc o me ).

• Co st o f $20 b illio n

43

T ax E xte nde r s

• On April 3, 2014, the Se na te F

ina nc e Co mmitte e a ppro ve d le g isla tio n to te mpo ra rily e xte nd c e rta in pro visio ns tha t e xpire d a t the e nd o f 2013 o r a re se t to e xpire a t the e nd o f 2014.

• E

xpiring Pro visio ns I mpro ve me nt Re fo rm a nd E ffic ie nc y (E XPI RE ) Ac t

• Se na te wo uld pre fe r to wa it o n

c o mpre he nsive ta x re fo rm until a fte r the mid- te rm e le c tio ns.

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6/9/2014 12

T ax E xte nde r s

• E

XPI RE Ac t pro visio ns

– De duc tio n fo r e xpe nse s o f e le me nta ry a nd se c o nda ry sc ho o l te a c he rs (c o st o f $430 millio n) – E xc lusio n o f mo rtg a g e de b t fo rg ive ne ss (c o st

• f $5.4 b illio n)

– De duc tio n fo r sta te a nd lo c a l g e ne ra l sa le s ta x (c o st o f $6.5 b illio n) – E xte nsio n o f R&D ta x c re dit (a llo ws c e rta in sta rtups to c la im c re dits a g a inst e mplo yme nt ta xe s). (c o st o f $16 b illio n)

45

T ax E xte nde r s

• E

XPI RE Ac t pro visio ns

– Wo rk Oppo rtunity T a x Cre dit e xte nde d thro ug h 2015 (c o st o f $3.2 b illio n) – E xte nsio n o f 15-ye a r stra ig ht-line c o st re c o ve ry fo r c e rta in le a se ho ld impro ve me nts (c o st o f $4.8 b illio n) – E xte nsio n o f 50% b o nus de pre c ia tio n fo r a sse ts pla c e d in se rvic e b e fo re 1/ 1/ 16, o r c e rta in lo ng -te rm pro je c ts pla c e d in se rvic e b e fo re 1/ 1/ 17 (c o st o f $2.9 b illio n)

46

T ax E xte nde r s

• E

XPI RE Ac t pro visio ns

– E xte nsio n o f the $500,000 / $2 millio n thre sho lds fo r Se c tio n 179 e xpe nsing (c o st o f $3.2 b illio n) – E xte nsio n o f the e xc e ptio n unde r sub pa rt F fo r a c tive fina nc ing inc o me (c o st o f $10.4 b illio n) – L

• o k-thro ug h tre a tme nt o f pa yme nts b e twe e n

re la te d CF C’ s unde r the fo re ig n pe rso na l ho lding c o mpa ny rule s (c o st o f $2.5 b illio n) – Re d uc tio n in S c o rpo ra tio n re c o g nitio n pe rio d to 5-ye a rs fo r sa le s o c c urring in 2014 a nd 2015 (c o st o f $232 millio n)

47

T ax E xte nde r s

• E

XPI RE Ac t pro visio ns

– Ame ric a n So mo a e c o no mic de ve lo pme nt c re dit e xte nde d thro ug h 2015 (c o st o f $29 millio n) – T hre e ye a r de pre c ia tio n pe rio d fo r c e rta in ra c ing ho rse s (c o st o f $9 millio n) – Se ve n ye a r de pre c ia tio n pe rio d fo r c e rta in mo to rspo rts a re na pro pe rty (c o st o f $71 millio n) – E xte nsio n o f va rio us re ne wa b le e ne rg y a nd e ffic ie nc y pro visio ns.

48

6/9/2014 13

T ax E xte nde r s

• E

XPI RE Ac t re ve nue ra ise rs

– Child ta x c re dit dilig e nc e re q uire me nts (re ve nue o f $43 millio n) – L e vy o f up to 100% o n ta x de linq ue nt Me dic a re se rvic e pro vide rs (re ve nue o f $818 millio n) – I RS to e nte r into q ua lifie d ta x c o lle c tio n c o ntra c ts (re ve nue o f $2.4 b illio n) – I nde xing ta x pe na ltie s to infla tio n (re ve nue

• f $115 millio n)

49

QUE ST IONS