"A Better Way" - 2016 Republican Tax Reform Plan
The Republican House agenda outlines the legislative priorities for the 117th Congress including comprehensive tax reform (corporate, individual, border adjustment, depreciation allowances and other deductions). The Republican plan is interconnected in that each reform is largely dependent on achieving other portions of the larger agenda. For example, to lower corporate tax rates to 20% or lower (15%), many tax allowances such as depreciation allowances would need to be eliminated to a revenue/spending neutral proposal. Additionally, to fund a massive infrastructure spending package, a controversial border adjustment tax is being proposed. And, in order to lower individual rates, many personal deductions such as the mortgage interest deduction as well as deductions for state and local taxes are being proposed for elimination.
199 - American Jobs Creation Act
Congress passed the American Jobs Creation Act in 2004 ("Jobs Creation Act"). Title I of the Jobs Creation Act had two purposes: first, it repealed the Exclusion for Extraterritorial Income (ETI) as required by a decision of the World Trade Organization (WTO) and second, it added § 199 to the Internal Revenue Code (IRC) of 1986. Section 199 was intended, in part, to compensate U.S. exporters for the tax benefits they would lose as a result of the repeal of the exclusion for ETI and also to encourage certain businesses to create jobs. Unfortunately, the Internal Revenue Service (IRS) has interpreted § 199 in a manner that effectively vitiates the ability of scrap recyclers to claim the deduction, despite the fact that the scrap recycling industry is, and has been for decades, one of the United States largest net exporters, subjecting a large number of recyclers to huge deficiency assessments upon audit.