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President Trump's Tax Proposal: Will the Race to Tax Reform be a Marathon or a Sprint? Planning Update

VIEW PLANNING UPDATE (PDF)

SUMMARY

President Trump recently released a proposal for tax reform. This planning update provides a comparison of the current tax law, the GOP plan, the plan proposed by President Trump when he was a candidate, and the plan he released as president. 

KEY TAKEAWAYS

  • President Trump's recently released proposal for tax reform is likely to lead to a heated debate over the future of U.S. tax policy.
  • While the announcement was short on policy details, we believe that Congress's most consequential decision will be in deciding whether to structure any final legislation as either deficit-financed tax cuts that would expire after 10 years or deficit-neutral tax reform lasting beyond the next 10 years.
  • We recommend not getting too distracted by these events, and maintaining a goals-based approach to planning that incorporates flexibility and emphasizes long-term planning objectives.