Key takeaways

• Yesterday, the Trump administration released its long-anticipated proposal for tax reform, setting out general principles for reform in a one-page proposal and leaving many questions unanswered.
• The proposal significantly lowers tax rates, reducing the corporate tax rate to 15% from 35% and the top individual tax rate to 35% from 39.6%. Reports also suggest that a 15% tax rate will apply to income from businesses held through pass-through structures.
• The proposal does not include the much-discussed border adjustment tax. However, it would replace our current worldwide taxation system with a territorial system that taxes American companies only on income related to the United States, and would impose a one-time tax on existing offshore earnings (at a rate to be determined).