1. Jul 2015 Sep 2014 Jan 2015 Tax Reform Timeline of Key Recent Federal Actions on Tax Reform Potential Actions in 114 th Congress Comprehensive tax reform is unlikely in a short window; the most likely scenario for reform is likely to be another repatriation holiday or other international tax reforms Though there were originally proposals to use FY2016 budgetary reconciliation authority to address comprehensive tax reform, the joint budget resolution tied reconciliation language to repeal of the Affordable Care Act Proposals for moderate tax reform tied to renewal and funding of the Highway Trust Fund will make their way through Congress; any other plans for tax reform will likely be low priority until after the 2017 elections American Taxpayer Relief Act of 2012: A law which made a series of Bush administration tax cuts permanent, but increased tax rates on dividends, estate taxes, and payroll taxes; the bill also extended certain corporate tax breaks and certain tax breaks for lower-income families. Tax Reform Act of 2014: A comprehensive draft proposal for tax reform which was released by then-House Ways and Means Committee Chair, Rep. Dave Camp (R-MI); the bill would have lowered corporate and individual tax rates and simplified the tax code, but faced wide opposition and was only ceremonially put to the floor at the end of 2014. Treasury Actions on Inversion: Treasury Secretary Jack Lew put forward a series of measures designed to reduce benefits of tax inversions, including blocking inverted companies from transferring assets to parent companies and accessing foreign earnings. Senate Finance Committee Tax Working Groups: The Senate Finance committee created five tax reform ‘working groups’ on different issue areas to create proposals for tax reform in the 114th Congress. These reports were presented in July 2015; however, there was no consensus or clear plan for reforms. Portman-Schumer Plan: Sens. Portman (R-OH) and Schumer (D-NY) proposed a framework to tax all US corporate profits abroad regardless of repatriation, but at a significantly lower rate. The plan is supported by Rep. Paul Ryan (R-WI), but opposed by Senate majority leader Mitch McConnell (R-KY), who prefers comprehensive tax reform. Further Treasury Action: The Treasury Department announced additional rules intended to discourage tax inversion. The pharmaceutical company Pfizer announced plans to merge with Allergan, which would be the largest tax inversion so far. 2012 Feb 2014 December 3, 2015 | Tucker Doherty Source: Seung Min Kim, “Funding bill becomes immigration battle,” Politico, September 18, 2014; Steve Vladek, “National Security and the 2014 Midterms: A Preview of Monday’s CQ Roll Call/Just Security Event,” Just Security, September 21, 2014; Billy House and Sarah Mimms, “Spending, Immigration, and Tax Fights Will Dominate Final Days of Session,” National Journal, November 30, 2014; Jake Sherman and John Bresnehan, “Republicans ready to vote,” Politico; Manu Raju and Seung Min Kim, “House GOP’s Immigration Problem: No Path to 60 in the Senate,” Politico; Dara Lind, “Here’s the Republican strategy for stopping Obama on immigration,” Vox, January 13, 2015; “House Votes to strip federal funding “from sanctuary cities,’” Washington Post; National Journal Research, 2015. LEGISLATIVE FORECAST FOR THE 114 TH CONGRESSPRESENTATION CENTER Nov 2015