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Repatriating income to the U.S. has benefits.

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The Tax Cuts and Jobs Act (TCJA) imposes a transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated. Certain corporations must now increase their subpart F income by the amount of their deferred foreign income. Code Sec. 965, enacted as part of the TCJA, contains a loophole that allows taxpayers to convert such income so it becomes taxable at 8% (instead of the original 15.5%). This applies to the last tax year that began before Jan. 1, 2018.

A tax reform plan has been released

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The Trump Administration and select members of Congress have released a “unified framework” for tax reform. It provides more detail than other tax reform documents that have emerged from the White House over the past few months, but it still leaves many specifics to be worked out by Congressional tax-writing committees (the House Ways and Means Committee and the Senate Finance Committee). Among the provisions: a top tax bracket of 35% as compared with 39.6% today. More Information on the plan here

Health care reform still a White House priority

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President Trump tweeted on April 30 that a “new healthcare plan is on its way. Will have much lower premiums and deductibles while at the same time taking care of pre-existing conditions.” The President’s top aides said they want the U.S. House of Representatives to vote this week on a bill to repeal and replace the Affordable Care Act, though a vote isn’t scheduled yet and Republicans say they still lack the votes to pass it. Even if the plan passes the House, it’s expected to face a tough fight in the Senate.

President Trump’s budget cuts IRS funding by $239 million

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The President has released his “skinny budget” for 2018. A precursor to the full budget due in May, it’s a wish list of cuts and some basic economic projections in which he lays out plans for boosting military spending, cutting foreign aid and some domestic programs, and slashing IRS funding. The budget targets the IRS’s “antiquated operations” but states that the agency can “continue to combat identity theft, prevent fraud, and reduce the deficit” through enforcement and administration of tax laws.