Key takeaways

• For the first time in many years, Republican leaders in Congress believe that enacting major tax reform is possible.
• The starting point is likely to be a House policy paper, which contains proposals that would upend key principles that have been part of the tax law for decades.
• The policy paper calls for lowering personal and business tax rates, disallowing most interest deductions for businesses, permitting the expensing of business investment and adopting a territorial system of international taxation, under which the United States would exempt most foreign earnings from US tax.