Understand the 2 plans; where they align and how feasible they are from a budget perspective.

1. Comparing the Trump/House GOP
tax platforms
President-elect Donald Trump’s tax platform gradually aligned with the House
Republican blueprint over the course of the campaign, and the two now share many
similarities. Key proposals include the following:
© 2016 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
Issue Trump House GOP
Top individualrate 33% 33%
Top capital gains and dividendrate 20% 15.5%
Top corporate rate 15% 20%
Top pass-throughrate 15%* 25%*
Depreciation
Full expensing for
manufacturing if you forgo
interestdeduction
Full expensing with repeal of
interest deduction (bank
exception)
Current business benefits
Repeal all benefitsexcept
R&D credit
Repeal most benefits except
R&D credit
Other provisions ----- Corporate tax “border
adjustable”
Top estate taxrate Repeal† Repeal
Estate tax exemption Repeal† Repeal
Alternative minimumtax Repeal Repeal, but retain90%
net operating loss limit
International system Worldwide at 15% rate 100% dividendexemption
Deferral End Repeal SubpartF
One-time tax on unrepatriated earnings 10% 8.75%cash
3.5%other
*House proposes reduced rate on active business income after reasonable compensation determination, while
Trump promises reduced rate and pass-through treatment only for "small business" pass-throughs.
† Trump would also eliminate step up in basis in inherited assets and impose immediate tax on gains (first $10 million
exempt).

2. © 2016 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
The two plans vary more significantly in terms of feasibility from a budget perspective.
Revenue estimates Trump House GOP
Tax Foundationstatic - $4.4 trillion to - $5.9 trillion - $2.4 trillion
Tax Foundation dynamic - $2.6 trillion to - $3.9 trillion - $191 billion
Tax Policy Center static - $6.15trillion - $3.2 trillion
Tax Policy Center dynamic - $6.03trillion -----
The relative congruity of the two proposals, coupled with Republican control of the
White House and Congress, may make tax reform appear more likely than in recent
years. But the large price tags on both plans create legislative and political hurdles,
even when factoring in revenue increases from projected economic growth.
Republicans would have to expend a great deal of political capital to get either plan
passed, and if they do, Democrats will be waiting on the other side to label the
legislation as tax cuts for large corporations and wealthy individuals. And although 2018
seems distant, it will most certainly be on the minds of those members up for re-election
as the tax reform debate plays out.
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