US tax policy outlook – What's ahead for 2025

00:32:37
https://www.youtube.com/watch?v=06GQSJvU1LY

Ringkasan

TLDRIn this episode of the PwC Accounting Podcast, hosts Heather Horn, Kyle Moffett, and Pat Brown explore the current state of US tax policy and its outlook as key provisions of the Tax Cuts and Jobs Act approach their expiration in 2025. With one party controlling all branches of government, there's a heightened focus on potential tax legislation that could significantly impact both corporations and individual taxpayers. The discussion covers the reconciliation process, anticipated changes in corporate tax rates, the fate of environmental initiatives, and the implications of the Global Minimum Tax on international relations. The hosts emphasize the importance for companies to model various tax scenarios to navigate the uncertain landscape and prepare for upcoming changes.

Takeaways

  • 📈 Understanding US tax policy is crucial as we approach 2025.
  • 🗳️ The reconciliation process simplifies tax legislation passage in the Senate.
  • 🚫 Corporate tax rate increase is unlikely, but deductions may face changes.
  • 💡 Individuals could see tax increases if Congress doesn’t act.
  • 🌱 Environmental incentives may face scrutiny and possible modifications.
  • 🌍 The US may not participate in the Global Minimum Tax, affecting international relations.
  • 📝 Companies should model different tax scenarios for better planning.
  • 🤝 Continuing dialogue among policymakers is key for legislative outcomes.
  • 🔍 Tax policy developments require close attention from finance teams.
  • 📊 CFOs need to prepare numerical ranges to inform stakeholders.

Garis waktu

  • 00:00:00 - 00:05:00

    In today's podcast, Heather Horn introduces a discussion on the US tax policy outlook amid significant political changes and the approaching expiration of tax cuts from the Tax Cuts and Jobs Act (TCJA). Guest hosts Kyle Moffett and Pat Brown aim to provide insights on the current state of tax policy and its implications for businesses. They expect pivotal developments as Congress considers potential tax reforms ahead of the 2025 deadlines.

  • 00:05:00 - 00:10:00

    Pat outlines the importance of 2017's TCJA, the most substantial tax policy shift in three decades, which included a reduction in corporate tax rates. As individual tax cuts are set to expire in 2026, Congress faces pressure to act, lest it be viewed as enacting a tax increase, affecting every W2 wage earner in the country.

  • 00:10:00 - 00:15:00

    Kyle and Pat discuss the complicated reconciliation process in Congress that allows for tax legislation to be passed with a simple majority. This means that amidst fierce partisan division, Republicans must agree on a budget that addresses both tax cuts and potential increases without exceeding deficit limits, complicating the legislative process.

  • 00:15:00 - 00:20:00

    The conversation reveals ongoing debates within both the House and Senate about what measures to include in potential tax legislation. Although corporate tax rates are unlikely to increase, there are concerns about possible limitations on corporate tax deductibility for state and local taxes, which could lead to effective tax rate increases.

  • 00:20:00 - 00:25:00

    As policymakers weigh Trump's proposed tax provisions, including changes to taxes on tipped income and manufacturing, they face a challenge reconciling budgetary considerations with those initiatives. The necessity of finding offsetting measures in a reconciliation context means that companies must prepare for potential shifts in tax policy.

  • 00:25:00 - 00:32:37

    Finally, Pat emphasizes that companies should develop scenarios around potential legislative outcomes to better inform senior management and investors. The ongoing discussion about the reconciliation process and its implications indicates busy times for tax professionals, as they must navigate uncertainty and prepare for potential changes in tax law.

Tampilkan lebih banyak

Peta Pikiran

Video Tanya Jawab

  • What are the key topics discussed in the podcast?

    The podcast discusses the current state of US tax policy, the implications of the Tax Cuts and Jobs Act, and the expected changes in tax legislation.

  • Who are the guest hosts in this episode?

    Kyle Moffett is the guest host, and Pat Brown is the co-host.

  • What is the significance of the reconciliation process in tax policy?

    The reconciliation process allows legislation to pass through the Senate without a 60-vote threshold, enabling tax changes to be enacted more easily.

  • What potential changes are anticipated in corporate tax rates?

    It's unlikely that corporate tax rates will increase, but there may be adjustments affecting deductions.

  • How might the expiration of individual tax cuts impact taxpayers?

    If Congress does nothing, individual tax cuts will expire, leading to increased withholding for many taxpayers.

  • What should companies do to prepare for potential tax changes?

    Companies should model different tax scenarios to understand potential impacts on their financials.

  • What is the role of environmental initiatives in upcoming legislation?

    Environmental credits under the Inflation Reduction Act will be scrutinized, with potential modifications expected.

  • What are the expected impacts of the Global Minimum Tax?

    There may be tension with international relations as the US does not plan to participate, which could impact companies operating globally.

  • What strategies can CFOs employ regarding tax policy changes?

    CFOs should seek a range of numerical outcomes for potential tax changes to better inform stakeholders.

  • How can companies ensure they are not caught off guard by tax policy changes?

    Staying informed and prepared with data-driven financial scenarios can help companies navigate changes effectively.

Lihat lebih banyak ringkasan video

Dapatkan akses instan ke ringkasan video YouTube gratis yang didukung oleh AI!
Teks
en
Gulir Otomatis:
  • 00:00:00
    thought leadership from pwc's national
  • 00:00:06
    office hello and welcome to pwc's
  • 00:00:09
    accounting podcast I'm Heather horn in
  • 00:00:12
    today's episode we're diving into the US
  • 00:00:15
    tax policy Outlook with the new
  • 00:00:17
    Administration and key provisions of the
  • 00:00:19
    tax cuts and jobs acts approaching their
  • 00:00:22
    expiration date the political Stakes
  • 00:00:24
    rise making this a pivotal year for tax
  • 00:00:27
    policy in today's episode we discuss the
  • 00:00:29
    current State and the road ahead we'll
  • 00:00:32
    also sharing some key insights on what
  • 00:00:34
    this all means for companies and how to
  • 00:00:39
    prepare joining us as the guest host for
  • 00:00:41
    today's episode is Kyle Moffett pwc's
  • 00:00:44
    professional practice leader and joining
  • 00:00:47
    Kyle for this episode I'm happy to
  • 00:00:49
    welcome back Pat Brown pwc's Washington
  • 00:00:52
    National Tax Services co-leader prior to
  • 00:00:55
    joining PWC Pat spent 16 years in the
  • 00:00:57
    private sector and also served in the US
  • 00:01:00
    treasury's office of tax policy anyone
  • 00:01:03
    who's listened to any of Pat's prior
  • 00:01:05
    podcasts knows he always brings a lot of
  • 00:01:07
    insight and for you new listeners you're
  • 00:01:09
    in for a treat so let's tune in this
  • 00:01:12
    episode now welcome to today's episode
  • 00:01:15
    uh thanks for joining me Pat today we're
  • 00:01:17
    going to dive into uh the latest updates
  • 00:01:19
    and and key issues shaping us tax policy
  • 00:01:21
    in 2025 which given the change in in
  • 00:01:24
    administration and of course now with
  • 00:01:26
    one party controlling all three branches
  • 00:01:28
    of government it's certainly a a Hot
  • 00:01:30
    Topic right now and and there's a lot to
  • 00:01:32
    discuss Pat I know you expect a tax bill
  • 00:01:34
    in 2025 we we keep hearing it um
  • 00:01:37
    especially with the expiration of the
  • 00:01:38
    provisions from the tax cuts and jobs
  • 00:01:40
    act but before we dive into the details
  • 00:01:43
    of what's ahead or what you expect to be
  • 00:01:45
    ahead for us um can you provide an
  • 00:01:47
    overview of the current s of us tax
  • 00:01:48
    policy yeah sure first of all thanks
  • 00:01:51
    Kyle for having me it's great to be here
  • 00:01:52
    and you're right our timing is good yeah
  • 00:01:55
    uh although as we're going to discuss
  • 00:01:57
    I'm sure it remains uncertain exactly
  • 00:01:59
    how all this is going to unfold and
  • 00:02:01
    that's obviously what those of us who
  • 00:02:03
    are in Washington circles are frankly
  • 00:02:05
    reading about every single day multiple
  • 00:02:07
    times a day uh about the various back
  • 00:02:09
    and forth amongst the competing parties
  • 00:02:11
    you know the House Republicans Senate
  • 00:02:14
    Republicans and the White House Etc so
  • 00:02:17
    so where we sit right now and you
  • 00:02:18
    already alluded to it uh we had major
  • 00:02:20
    tax legislation in 2017 right and that
  • 00:02:23
    was the tax cuts and jobs act that was
  • 00:02:25
    really the biggest change we had seen in
  • 00:02:27
    US tax policy in 30 years the last time
  • 00:02:31
    we did anything of that magnitude was
  • 00:02:34
    the tax reform Act of
  • 00:02:35
    1986 and that of course was a very
  • 00:02:39
    significant change in US tax policy at
  • 00:02:41
    the time but we hadn't changed it I mean
  • 00:02:43
    the tax code of course changes every
  • 00:02:44
    year but we hadn't seen any really
  • 00:02:46
    significant policy changes in 30 years
  • 00:02:49
    um the Republicans of course with
  • 00:02:51
    President Trump in the white house then
  • 00:02:53
    in 2017 Republicans controlled the house
  • 00:02:55
    and the Senate and so they made the
  • 00:02:57
    decision that tax policy was going to be
  • 00:02:59
    one of the things that they could
  • 00:03:00
    advance on a Partyline basis using this
  • 00:03:02
    process that I'm sure we'll talk about
  • 00:03:04
    as well called
  • 00:03:05
    reconciliation um and so they Advanced
  • 00:03:08
    major tax legislation uh in
  • 00:03:10
    2017 much of what our clients focus on
  • 00:03:14
    was of course the corporate tax changes
  • 00:03:15
    reducing the corporate tax rate from
  • 00:03:17
    then 35% one of the highest in the world
  • 00:03:20
    down to 21% which although it is a big
  • 00:03:24
    significant drop in the corporate tax
  • 00:03:26
    rate more or less puts us kind of in the
  • 00:03:27
    middle of the pack of the oecd country
  • 00:03:30
    when it comes to the corporate tax rate
  • 00:03:31
    and so of course from the business
  • 00:03:33
    community's perspective one of the
  • 00:03:34
    things that there's been a lot of
  • 00:03:35
    concern about is well is the corporate
  • 00:03:37
    tax rate going to go back up in this
  • 00:03:39
    exercise in some way that is what
  • 00:03:42
    President Biden had wanted to see happen
  • 00:03:43
    it's what vice president Harris had
  • 00:03:45
    campaigned on I think it's very unlikely
  • 00:03:48
    to that we're going to see a corporate
  • 00:03:49
    tax increase but interestingly enough
  • 00:03:51
    corporate tax is not the action forcing
  • 00:03:53
    event for tax legislation this year the
  • 00:03:56
    corporate tax rate went down from 35 to
  • 00:03:58
    21% as I mentioned that happened on at
  • 00:04:00
    least on a nominally permanent basis
  • 00:04:02
    that is to say it was put in the code as
  • 00:04:04
    a change with no sunset or no expiration
  • 00:04:07
    there were also a bunch of individual
  • 00:04:09
    tax cuts a lot of individual tax cuts
  • 00:04:11
    and adopted in
  • 00:04:13
    2017 those were adopted with sunsets
  • 00:04:16
    they expire right why because in order
  • 00:04:18
    to make a Reconciliation Bill work in
  • 00:04:21
    order to make it quote
  • 00:04:23
    reconcile uh it cannot lose money
  • 00:04:25
    outside of the 10-year budget window
  • 00:04:28
    okay and that means essentially if
  • 00:04:29
    you're going to adopt a bunch of tax
  • 00:04:30
    cuts you either have to adopt a bunch of
  • 00:04:32
    pay fors or you have to have the tax
  • 00:04:35
    cuts expire at some point and so where
  • 00:04:37
    we are now is essentially the chickens
  • 00:04:40
    have come home to Roose we're at year
  • 00:04:42
    eight following the uh enactment of the
  • 00:04:45
    tcja in 2017 and all of these individual
  • 00:04:49
    tax cuts are going to expire at the end
  • 00:04:51
    of this year so if Congress does nothing
  • 00:04:55
    January 1st of
  • 00:04:56
    2026 every American essentially who
  • 00:04:59
    every American who receives a W2 is
  • 00:05:01
    going to see their paycheck is going to
  • 00:05:04
    decrease because their withholding is
  • 00:05:06
    going to go up as a result of the
  • 00:05:08
    expiration of these tax cuts that is an
  • 00:05:10
    action forcing event for the Congress so
  • 00:05:12
    they're looking at this and saying our
  • 00:05:14
    failure to act this year is going to
  • 00:05:16
    cause every American to feel as though
  • 00:05:18
    they've got a tax increase now it may
  • 00:05:20
    very well be the case Kyle of course and
  • 00:05:22
    you and I might talk about this from the
  • 00:05:24
    standpoint of the budget well that's not
  • 00:05:26
    really a tax increase because these are
  • 00:05:28
    tax cuts that are scheduled to expire
  • 00:05:30
    right so it's just the tax law unfolding
  • 00:05:32
    the way it's going going back to what it
  • 00:05:35
    was that's not a tax increase but of
  • 00:05:37
    course that's not the way politicians
  • 00:05:39
    you got to spin it the way you got spin
  • 00:05:40
    it right and so that's that is that is
  • 00:05:43
    ultimately what's forcing tax policy to
  • 00:05:46
    you know be Revisited this year it's the
  • 00:05:48
    individual tax cuts it's not anything on
  • 00:05:49
    the corporate side but of course that
  • 00:05:51
    doesn't mean there won't be things that
  • 00:05:53
    creep into a tax bill this year that are
  • 00:05:55
    on the corporate side as well and that's
  • 00:05:56
    what a lot of our clients are focused on
  • 00:05:58
    yeah no I mean I look I I think from a
  • 00:06:00
    personal perspective I'm I'm looking at
  • 00:06:02
    it and and anxious and interested for
  • 00:06:04
    just the individual taxes um aspect of
  • 00:06:07
    it um but but obviously it's definitely
  • 00:06:09
    going to be a very busy year and I think
  • 00:06:12
    as you alluded to you talked about the
  • 00:06:13
    reconciliation process um and and
  • 00:06:16
    obviously there's Whenever there you
  • 00:06:17
    people are talking about it they're
  • 00:06:19
    talking about you know all the
  • 00:06:21
    requirements the how how you know the
  • 00:06:23
    law Congress law how how everything is
  • 00:06:26
    impacted you think about the bird rule
  • 00:06:28
    all these different element
  • 00:06:30
    filibustering right um which which I
  • 00:06:32
    think you know I can tell you in just
  • 00:06:34
    conversations with clients that it is
  • 00:06:35
    something that they are confused on
  • 00:06:37
    right they're not steeped in knowledge
  • 00:06:38
    they're not paying attention like
  • 00:06:40
    someone like you is so can you give our
  • 00:06:42
    listeners a clearer picture of how the
  • 00:06:45
    legislative process will unfold what are
  • 00:06:47
    some of the key political and procedural
  • 00:06:49
    Dynamics at play here yeah um and so
  • 00:06:52
    first of all why reconciliation and the
  • 00:06:55
    answer to to to that is actually a
  • 00:06:56
    fairly simple one in order to advance
  • 00:06:59
    most legislation through the US Senate
  • 00:07:02
    you have to clear a 60 vote threshold
  • 00:07:04
    right 60 votes it takes to move most
  • 00:07:06
    bills through the US Senate um there are
  • 00:07:09
    of course a few exceptions to that one
  • 00:07:10
    of them that we have seen play out very
  • 00:07:13
    publicly in recent years Senate
  • 00:07:15
    confirmation of Judges Senate
  • 00:07:17
    confirmation of cabinet appointees uh is
  • 00:07:20
    now it didn't used to be done this way
  • 00:07:22
    but is now done on a strict majority
  • 00:07:24
    basis right and this is all a creature
  • 00:07:26
    of Senate rules right so the Senate can
  • 00:07:28
    change its own rules and over time they
  • 00:07:30
    have changed these rules to make more
  • 00:07:32
    things be done on a strict majority
  • 00:07:34
    basis and that's the nuclear option
  • 00:07:36
    right yes that's right SoCal the
  • 00:07:37
    so-called nuclear option is nuking the
  • 00:07:39
    filibuster getting rid of the filibuster
  • 00:07:41
    for certain items um in the tax area
  • 00:07:45
    they don't have to do that approach
  • 00:07:47
    because they have the ability to use
  • 00:07:49
    this other procedural option that's been
  • 00:07:51
    around since the 1970s that's referred
  • 00:07:54
    to as reconciliation and the process is
  • 00:07:56
    incredibly cumbersome but the goal
  • 00:08:00
    or the the benefit of the process is if
  • 00:08:03
    you use the reconciliation process
  • 00:08:05
    there's not a 60 vote requirement in the
  • 00:08:07
    Senate so reconciliation is essentially
  • 00:08:09
    a big pain in the neck for everybody
  • 00:08:11
    involved the house gets no benefits from
  • 00:08:13
    reconciliation the House of
  • 00:08:15
    Representatives gets no benefits from
  • 00:08:16
    this because the house is of course a
  • 00:08:17
    strict majoritarian body right the
  • 00:08:20
    Senate gets a huge if you will get out
  • 00:08:22
    of jail free card which is you don't
  • 00:08:25
    have to clear a 60 vote threshold and
  • 00:08:27
    when the Senate of course right now is
  • 00:08:29
    divided 53 Republicans 47 Democrats so
  • 00:08:32
    given that y there's no real Prospect
  • 00:08:34
    for getting for clearing a 60 vote
  • 00:08:36
    threshold to advance any of President
  • 00:08:39
    Trump's priorities in the tax area right
  • 00:08:41
    so the only way to do this is through
  • 00:08:43
    reconciliation but it's a pain in the
  • 00:08:44
    neck why is it a pain in the neck well
  • 00:08:46
    it's a pain in the neck because the
  • 00:08:48
    starting point for doing any
  • 00:08:49
    reconciliation bill is both the house
  • 00:08:52
    and the Senate have to agree on a budget
  • 00:08:54
    and the budget is essentially just a
  • 00:08:56
    number I'm simplifying to a certain
  • 00:08:58
    extent but just to you know lay it out
  • 00:09:00
    to in its Essentials the budget is a
  • 00:09:02
    number how much money are we going to
  • 00:09:04
    raise how much additional deficit
  • 00:09:06
    increase are we going to have over the
  • 00:09:08
    next 10 years um the budget doesn't go
  • 00:09:11
    to the White House for approval but both
  • 00:09:13
    the house and the Senate have to reach
  • 00:09:14
    agreement on a budget and again it's a
  • 00:09:16
    number if I go back to 2017 the number
  • 00:09:19
    that the house and the Senate agreed to
  • 00:09:21
    in the tax when what became the tax cuts
  • 00:09:23
    and jobs Act was we will advance a
  • 00:09:26
    Reconciliation bill that can increase
  • 00:09:29
    the deficit by $1.5 trillion do over the
  • 00:09:31
    next 10 years can't increase it by one
  • 00:09:33
    penny outside of that 10e period because
  • 00:09:36
    then you would run a foul of the bird
  • 00:09:37
    rule named for Senator bird and that
  • 00:09:40
    would cause you to flunk the Recon flunk
  • 00:09:42
    a point of order if you will in the
  • 00:09:44
    Senate on the reconciliation bill so so
  • 00:09:47
    you have to agree on a budget the budget
  • 00:09:49
    is a number and then once you agree on
  • 00:09:51
    that number and again in 2017 it was we
  • 00:09:55
    can uh pass T tax legislation that will
  • 00:09:57
    increase the deficit over the next 10
  • 00:09:59
    years by up to $1.5 trillion once you
  • 00:10:02
    agree on that number now you turn to the
  • 00:10:04
    process of actually writing substantive
  • 00:10:06
    legislation but again the math for a
  • 00:10:09
    Reconciliation bill is completely
  • 00:10:11
    unforgiving you're going to hit 1 and a
  • 00:10:13
    half trillion you better hit one and a
  • 00:10:15
    half trillion if you go over that you
  • 00:10:17
    have a bill that no longer is in order
  • 00:10:19
    from a Reconciliation perspective and so
  • 00:10:22
    what we're seeing literally unfold right
  • 00:10:24
    now Kyle is House Republicans and Senate
  • 00:10:28
    Republicans both essentially trying to
  • 00:10:30
    advance dueling versions of a budget
  • 00:10:33
    well why is the budget so important well
  • 00:10:35
    because both sides know once you decide
  • 00:10:37
    on what that number is yeah now you have
  • 00:10:40
    to squeeze all of your legislative
  • 00:10:42
    priorities into that into that number
  • 00:10:46
    and it becomes a real challenge because
  • 00:10:48
    it means a lot has to get left on The
  • 00:10:49
    Cutting Room floor this happened in 2017
  • 00:10:52
    things don't get done that that parties
  • 00:10:54
    really want that the political parties
  • 00:10:56
    really want to get done for example in
  • 00:10:58
    2017 they really president Trump really
  • 00:11:01
    wanted a 20 20% corporate tax rate why
  • 00:11:04
    don't we have a 20% corporate tax rate
  • 00:11:06
    now because of reconciliation they
  • 00:11:08
    couldn't make the math work right and so
  • 00:11:10
    we ended up with a 21% rate so that's
  • 00:11:13
    why reconciliation is such a challenge
  • 00:11:15
    is because you have you start with a
  • 00:11:17
    budget and the budget really forces your
  • 00:11:20
    hand to to make your taxing or lowering
  • 00:11:23
    spending am I raising or lowering taxes
  • 00:11:26
    and how do I yeah know that and and some
  • 00:11:28
    member will say say something during the
  • 00:11:30
    process I insist upon this or you won't
  • 00:11:32
    get my vote for the bill well that's
  • 00:11:34
    going to have an effect on some number
  • 00:11:36
    and now you have to find some other
  • 00:11:38
    number that has to move to fit within
  • 00:11:41
    whatever the overall budget is and that
  • 00:11:43
    forces a lot of frankly pretty
  • 00:11:45
    unpalatable decisions often very late in
  • 00:11:47
    the process of the bill getting put
  • 00:11:49
    together in order to get a bill that
  • 00:11:51
    satisfies the number it can get
  • 00:11:54
    through we don't anticipate this having
  • 00:11:57
    to this is going to be through
  • 00:11:59
    reconciliation we'd don't anticipate
  • 00:12:01
    that this is going to go down the path
  • 00:12:03
    of get you know possibly getting 60 60
  • 00:12:06
    votes or a filler Buster people
  • 00:12:08
    shouldn't get excited it's likely
  • 00:12:10
    something that that will get done and
  • 00:12:11
    get done this year yeah I think it'll
  • 00:12:13
    get done this year and I think it'll get
  • 00:12:14
    done through
  • 00:12:15
    reconciliation the only way that doesn't
  • 00:12:17
    happen which would be catastrophic
  • 00:12:18
    frankly for uh the Republicans and
  • 00:12:20
    president Trump is they are just utterly
  • 00:12:22
    and completely unable to come to
  • 00:12:24
    agreement on anything within their own
  • 00:12:25
    party and then in that case you'd have
  • 00:12:27
    something where probably like in
  • 00:12:29
    December Republicans would go to
  • 00:12:31
    Democrats and say we can't make this
  • 00:12:34
    work on our own we need your help to
  • 00:12:36
    come up with some sort of a bipartisan
  • 00:12:37
    package I think the odds of that
  • 00:12:39
    happening are extremely low just I mean
  • 00:12:42
    so a repe a repeat of 2017 you you think
  • 00:12:45
    is Extreme is is unlikely I guess that
  • 00:12:48
    was not fun to deal with it was it was
  • 00:12:50
    pretty ugly I think we you know a lot of
  • 00:12:53
    times these reconciliation bills have
  • 00:12:54
    near-death experiences uh and I wouldn't
  • 00:12:56
    be surprised if we see a few of those
  • 00:12:58
    right right but would be surprised if we
  • 00:13:00
    get to you know the end of this year and
  • 00:13:03
    the Republicans essentially throw up
  • 00:13:05
    their hands and say to president Trump
  • 00:13:08
    we just can't we can't get agreement
  • 00:13:09
    even even amongst ourselves I don't
  • 00:13:11
    think that's likely to happen
  • 00:13:13
    interesting well look I think that that
  • 00:13:15
    certainly sets the stage so so let's
  • 00:13:17
    dive into maybe what you expect or what
  • 00:13:20
    we expect to see uh in the tax bill what
  • 00:13:24
    are some of the key Provisions that are
  • 00:13:25
    being kind of you know discussed and
  • 00:13:28
    imagine you know you with your history
  • 00:13:29
    and prior experience I'm sure people
  • 00:13:32
    reach out to you with ideas and thoughts
  • 00:13:34
    and you know what challenges did the
  • 00:13:35
    lawmakers face here and navigating some
  • 00:13:37
    of these issues through uh to a final
  • 00:13:39
    bill yeah so I think you know the
  • 00:13:41
    starting point of course for a lot of
  • 00:13:43
    this discussion is going to be well what
  • 00:13:45
    did President Trump campaign on right
  • 00:13:48
    and president Trump being president
  • 00:13:50
    Trump he campaigned on a lot of things
  • 00:13:51
    he talked about a lot of things on the
  • 00:13:52
    campaign Trail um that's obviously not
  • 00:13:55
    atypical for politicians running for
  • 00:13:57
    president they you know want to talk to
  • 00:13:59
    the voters about lots of different ideas
  • 00:14:01
    that they have um but even since his
  • 00:14:03
    election indeed even as recently as last
  • 00:14:05
    week he has gone back to some of the
  • 00:14:08
    themes that he campaigned on and has
  • 00:14:09
    talked about wanting to see changes to
  • 00:14:12
    the tax law that are consistent with
  • 00:14:13
    that so he has talked about reducing or
  • 00:14:15
    eliminating the tax on tipped income
  • 00:14:18
    he's talked about reducing tax on
  • 00:14:20
    overtime pay he's talked about reducing
  • 00:14:21
    tax on Social Security benefits on the
  • 00:14:24
    corporate side he's talked about maybe
  • 00:14:26
    we should have a reduced tax rate for
  • 00:14:29
    domestic manufacturing uh because of
  • 00:14:31
    course one of his you know passions has
  • 00:14:33
    been the idea of trying to reinvigorate
  • 00:14:35
    Manufacturing in the United States
  • 00:14:37
    that's obviously a lot of what his trade
  • 00:14:38
    policy is focused on as well so I think
  • 00:14:41
    that's a good place to start for things
  • 00:14:44
    that they're going to have to consider
  • 00:14:46
    now again this has to be done through a
  • 00:14:48
    Reconciliation bill so if you're going
  • 00:14:49
    to do something with respect to the
  • 00:14:51
    taxation of tipped income reducing taxes
  • 00:14:54
    on tips are you going to pay for that in
  • 00:14:56
    some way or you going to increase the
  • 00:14:57
    deficit to finance that is that the
  • 00:14:59
    approach that you're going to take
  • 00:15:01
    what's that going to look like we're
  • 00:15:02
    going to have to wait and see obviously
  • 00:15:04
    how this process plays out over the
  • 00:15:06
    course of the year I think on the
  • 00:15:08
    corporate side one of the most common
  • 00:15:10
    questions I get is How likely is it that
  • 00:15:11
    the corporate tax rate goes up and I
  • 00:15:13
    think it's very unlikely the corporate
  • 00:15:15
    tax rate goes up that's the good news
  • 00:15:17
    the not so good news is the idea of pay
  • 00:15:20
    fors from the corporate sector we cannot
  • 00:15:23
    take our eye off the ball on those so
  • 00:15:25
    one of the things that we've been
  • 00:15:26
    hearing about recently is well in
  • 00:15:29
    2017 the Congress made the decision to
  • 00:15:32
    put a cap on the deductibility of state
  • 00:15:34
    and local taxes now for folks who live
  • 00:15:36
    in high tax States they're all very
  • 00:15:37
    familiar with this right and not happy
  • 00:15:40
    about it exactly they did not Congress
  • 00:15:43
    did not do that with with respect to
  • 00:15:45
    corporate state and local taxes it was
  • 00:15:47
    only done on the individual side you can
  • 00:15:49
    argue that that was the right policy
  • 00:15:51
    choice to have made because of course
  • 00:15:53
    corporate taxes are a business expens of
  • 00:15:55
    Corporations so does it really make
  • 00:15:57
    sense to deny a deduction to a
  • 00:15:58
    corporation for anary bu expense you can
  • 00:16:01
    make the argument that individual taxes
  • 00:16:02
    are different the reality is in 2017
  • 00:16:05
    they probably concluded they didn't need
  • 00:16:06
    the money right and it wasn't it wasn't
  • 00:16:08
    a very desirable option in 2017 and they
  • 00:16:12
    didn't need it to make the math work for
  • 00:16:14
    reconciliation but it has reemerged as
  • 00:16:16
    something that's being talked about
  • 00:16:18
    right now so now for again for our
  • 00:16:20
    clients in the corporate space you'd say
  • 00:16:22
    well good news the corporate tax rate we
  • 00:16:25
    think is very unlikely to go up so it's
  • 00:16:26
    going to be at 21% but if they take away
  • 00:16:30
    the deductibility for state and local
  • 00:16:32
    taxes and that amounts to basically the
  • 00:16:34
    equivalent of a 2 percentage Point
  • 00:16:36
    increase in your tax rate in your
  • 00:16:38
    corporate tax rate well that's not a
  • 00:16:40
    great answer right so good news is the
  • 00:16:42
    corporate rate's 21 the bad news is your
  • 00:16:45
    ETR just went up by two percentage
  • 00:16:47
    points anyway because they took away a
  • 00:16:49
    deduction that you were relying on so
  • 00:16:51
    these are some of the things we're going
  • 00:16:52
    to have to watch for Kyle is very much
  • 00:16:54
    in the corporate space the the
  • 00:16:57
    Temptation on the part of politicians to
  • 00:16:59
    essentially where every option is bad
  • 00:17:02
    maybe some options as they see it are
  • 00:17:04
    less bad and one of them might be
  • 00:17:06
    raising taxes on what are perceived to
  • 00:17:08
    be very large very profitable
  • 00:17:11
    corporations is that considered an
  • 00:17:12
    easier place to go right the concern of
  • 00:17:14
    course that a lot of companies will have
  • 00:17:16
    is well to the extent that makes it
  • 00:17:18
    harder for me to expand my facilities to
  • 00:17:22
    invest in new product to hire more
  • 00:17:24
    employees you are having those
  • 00:17:27
    Downstream effects in the economy
  • 00:17:29
    Senator or Congressman you just may not
  • 00:17:31
    necessarily see it as directly but you
  • 00:17:33
    are having those Downstream effects in
  • 00:17:35
    the economy and so maybe that's not the
  • 00:17:37
    the best place to go I think the the
  • 00:17:39
    other thing that a lot of um if you look
  • 00:17:42
    historically a lot of times where
  • 00:17:44
    politicians will look for Revenue in the
  • 00:17:47
    corporate space is international so the
  • 00:17:50
    foreign activities of us headquartered
  • 00:17:53
    companies because of course on the
  • 00:17:55
    surface that looks as a relative matter
  • 00:17:57
    like maybe it's a little bit easier I'm
  • 00:17:59
    not raising taxes on anything in the
  • 00:18:00
    United States I'm raising taxes on
  • 00:18:03
    things happening outside the United
  • 00:18:04
    States and surely that won't have a
  • 00:18:06
    negative effect on my constituents but
  • 00:18:08
    here again the problem is if what you're
  • 00:18:11
    talking about here is making it harder
  • 00:18:13
    for companies to compete in foreign
  • 00:18:15
    markets you know I used to work for a
  • 00:18:17
    company and one of the stories that I
  • 00:18:19
    used to tell I was based at at a
  • 00:18:21
    facility in Upstate New York 80% of the
  • 00:18:24
    product that we produced was exported
  • 00:18:26
    yeah so if my company could not compete
  • 00:18:30
    in foreign markets and we couldn't sell
  • 00:18:32
    that product in foreign markets all
  • 00:18:34
    those jobs in Upstate New York are at
  • 00:18:36
    risk y making politicians understand
  • 00:18:39
    that point it's not to say that they're
  • 00:18:41
    unwilling to consider it it's just not
  • 00:18:42
    necessarily an intuitive point for them
  • 00:18:45
    yeah and so trying to get that message
  • 00:18:46
    across I think is one of the things that
  • 00:18:48
    people will have as a challenge this
  • 00:18:50
    year is trying to help uh Pol policy
  • 00:18:53
    makers understand maybe that looks like
  • 00:18:55
    an easier way to close the gap that
  • 00:18:58
    dealing with here in your reconciliation
  • 00:19:00
    bill but let me tell you why that's
  • 00:19:01
    maybe not as good of an idea as you
  • 00:19:03
    might think so so busy busy times in
  • 00:19:05
    Washington right with the lobbyist I'm
  • 00:19:07
    sure like this is yes probably um the
  • 00:19:10
    one of the a crazier probably never seen
  • 00:19:12
    a crazier time at least with respect to
  • 00:19:14
    tax I suspect that's probably true yes
  • 00:19:17
    yeah it's very interesting I guess I
  • 00:19:18
    guess one question for you that I'm just
  • 00:19:20
    curious whether you get this this
  • 00:19:21
    question um from clients or or others
  • 00:19:24
    just you know how how would assuming
  • 00:19:27
    these tariffs stay in place um and and
  • 00:19:31
    they're not you know simply a
  • 00:19:32
    negotiating foyer or whatever it's
  • 00:19:34
    assuming they stay in place how will
  • 00:19:36
    those be considered will they be part of
  • 00:19:38
    it's a great question Kyle and it's so
  • 00:19:41
    there's a there's an there's an sort of
  • 00:19:43
    official answer an official budget
  • 00:19:44
    scorekeeping answer and then there's
  • 00:19:46
    sort of a maybe the way politicians
  • 00:19:48
    might think about an answer the official
  • 00:19:50
    budget scorekeeping answer is the only
  • 00:19:52
    things that get taken into account in a
  • 00:19:54
    Reconciliation Bill are things that are
  • 00:19:56
    done via congressional action so things
  • 00:19:58
    that are done legislatively so when the
  • 00:20:01
    president uses his Article 2 authority
  • 00:20:04
    to impose tariffs that's not via
  • 00:20:06
    legislation or it's an act of the
  • 00:20:08
    executive perhaps authorized by
  • 00:20:10
    legislation but separate from any
  • 00:20:12
    legislation so it wouldn't formally be
  • 00:20:14
    taken into account in the budget but it
  • 00:20:18
    wouldn't be the first time if
  • 00:20:20
    politicians were sort of look at this if
  • 00:20:21
    members of Congress looked at this and
  • 00:20:23
    said look we may not be able to
  • 00:20:25
    officially count this revenue for
  • 00:20:27
    purposes of our our reconciliation
  • 00:20:29
    instruction in other words maybe the
  • 00:20:31
    reconcil I I'll go back to use 2017 as
  • 00:20:34
    an example maybe the reconciliation
  • 00:20:35
    instruction says we're going to increase
  • 00:20:37
    the deficit by $1.5 trillion doar but
  • 00:20:41
    the reality is there's going to be a
  • 00:20:42
    trillion dollars worth of tariff Revenue
  • 00:20:44
    that we expect to come in and even
  • 00:20:46
    though that won't count for purposes of
  • 00:20:49
    the math for reconciliation exactly I as
  • 00:20:51
    a politician
  • 00:20:53
    I that revenue is going to be there and
  • 00:20:55
    that should be counted as sort of a
  • 00:20:57
    moral offset if you will you know the
  • 00:21:00
    cost of the reconciliation bill so
  • 00:21:02
    there's an official answer and then
  • 00:21:04
    there is how how might policy makers try
  • 00:21:07
    to incorporate the Tariff discussion
  • 00:21:09
    into the way the bill gets brought
  • 00:21:11
    forward so I wanted to also talk about
  • 00:21:13
    something we haven't touched on yet and
  • 00:21:15
    and given president Trump's recent
  • 00:21:17
    statements about scaling back climate
  • 00:21:19
    initiatives right um how might this
  • 00:21:21
    affect the environmental credits
  • 00:21:22
    established under the
  • 00:21:24
    IRA just that's in the top top of my
  • 00:21:27
    mind I know a lot of interested in like
  • 00:21:29
    what's this going to look like a very
  • 00:21:30
    common question we're getting from a lot
  • 00:21:32
    of companies is what's going to be the
  • 00:21:35
    fate of the inflation reduction act
  • 00:21:37
    incentives these green energy credits
  • 00:21:38
    that were adopted in
  • 00:21:40
    2022 and one of the things that's most
  • 00:21:42
    interesting about that is for a lot of
  • 00:21:44
    companies um they've essentially
  • 00:21:46
    committed significant Capital
  • 00:21:48
    Investments to uh you know as a result
  • 00:21:50
    of these credits coming into place and
  • 00:21:52
    so one of the first questions that they
  • 00:21:53
    are bringing forward to policy makers is
  • 00:21:56
    you know is it appropriate for you or or
  • 00:21:58
    can we possibly preserve the credits
  • 00:22:01
    that are here because we've made
  • 00:22:03
    commitments on the basis of them and you
  • 00:22:05
    know we don't think it's appropriate to
  • 00:22:07
    to yank those from us essentially as we
  • 00:22:08
    sit there today um I think the more the
  • 00:22:11
    most likely outcome with one thing
  • 00:22:13
    that's very clear to say is they're
  • 00:22:14
    going to get a close look right the the
  • 00:22:16
    incentives that were adopted in 2020
  • 00:22:18
    going get a very very close look I
  • 00:22:20
    suspect some of them are more vulnerable
  • 00:22:22
    than others I think some of the electric
  • 00:22:24
    vehicle um incentives are probably more
  • 00:22:26
    vulnerable some of the others you know
  • 00:22:28
    Carbon sequestration or things like that
  • 00:22:30
    maybe a little bit less vulnerable um
  • 00:22:33
    speaker Johnson who of course the
  • 00:22:35
    Speaker of the House of Representatives
  • 00:22:37
    even before the election he had said you
  • 00:22:39
    know we don't we expect to take a
  • 00:22:41
    scalpel to those incentives not a
  • 00:22:42
    sledgehammer I think was the expression
  • 00:22:44
    that he used so he made it clear then
  • 00:22:46
    that he didn't expect these things to
  • 00:22:48
    Disappear Completely but that he did
  • 00:22:49
    expect them to to get a close look I
  • 00:22:52
    think one of the things that's
  • 00:22:53
    interesting about that is where a lot of
  • 00:22:55
    this investment is happening as a result
  • 00:22:57
    of the inflation uction act incentives
  • 00:23:00
    it's in States like North Dakota South
  • 00:23:02
    Dakota Oklahoma Texas Louisiana states
  • 00:23:05
    that are pretty heavily represented by
  • 00:23:07
    Republicans well Republican policy
  • 00:23:09
    makers like jobs in their state and
  • 00:23:11
    their District too right and so so
  • 00:23:13
    there's an aspect of that that's also
  • 00:23:15
    playing into and and so I think they're
  • 00:23:17
    going to have to kind of work through
  • 00:23:18
    all of that uh and figure out what is
  • 00:23:21
    going to be a landing place on this but
  • 00:23:22
    I I think the answer is somewhere in
  • 00:23:24
    between a free pass and those things
  • 00:23:28
    going think that makes sense yeah and I
  • 00:23:30
    think that's where we're likely to land
  • 00:23:31
    yeah so so another topic and and we
  • 00:23:33
    talked a little bit about this just kind
  • 00:23:34
    of the global impacts International so
  • 00:23:37
    you know obviously the the last few
  • 00:23:38
    years Hot Topic um for a lot of
  • 00:23:41
    companies and it's pillar two it's this
  • 00:23:43
    Global minimum tax so Trump has said
  • 00:23:45
    that the US will not participate in it
  • 00:23:47
    yes um how might this work how might it
  • 00:23:50
    affect international relations obviously
  • 00:23:52
    I'm not sure that's a top of concern of
  • 00:23:55
    his right now um and but and how does
  • 00:23:57
    that impact domestic tax policy yeah I
  • 00:23:59
    so it's it's a really fascinating
  • 00:24:01
    Dynamic and you know we've sort of been
  • 00:24:03
    seeing this this almost like a little
  • 00:24:05
    bit of a slow motion train wreck have
  • 00:24:07
    we've been watching this happen um
  • 00:24:09
    because even before the Republicans had
  • 00:24:11
    complete control uh obviously as a
  • 00:24:14
    result of the November elections even
  • 00:24:15
    before it was clear president Trump was
  • 00:24:17
    going to get elected again in November
  • 00:24:19
    of 24 we saw Republicans in the Congress
  • 00:24:22
    really getting increasingly agitated
  • 00:24:25
    about what they saw um at as an
  • 00:24:28
    infringement upon their sovereignty as
  • 00:24:31
    the body that makes the tax law for the
  • 00:24:33
    United States so they really looked at
  • 00:24:35
    the oecd's pillar two project which to
  • 00:24:38
    give the take a step back for the
  • 00:24:39
    listeners pillar two is this 15% minimum
  • 00:24:42
    tax that's to be applied on a company's
  • 00:24:45
    income earned in every country all
  • 00:24:47
    around the world so any pockets of low
  • 00:24:49
    tax any income anywhere in around the
  • 00:24:51
    world are supposed to be subject to a
  • 00:24:53
    15% rate of Taxation well for a lot of
  • 00:24:56
    companies what what ESS they were going
  • 00:24:59
    into members of Congress and describing
  • 00:25:01
    was a phenomenon where hey I'm investing
  • 00:25:03
    heavily in the United States I'm taking
  • 00:25:06
    accelerated depreciation on new
  • 00:25:08
    investment in the United States I'm
  • 00:25:09
    earning I'm I'm doing a lot of research
  • 00:25:11
    in the United States and qualifying for
  • 00:25:13
    research credits I'm going to be below
  • 00:25:15
    15% in the United States as a result of
  • 00:25:18
    that not because I'm engaged in some
  • 00:25:20
    sort of Nefarious tax planning but
  • 00:25:22
    because I'm doing what you the Congress
  • 00:25:23
    asked me to do um and I'm seeking to to
  • 00:25:27
    take the benefits that are obviously
  • 00:25:28
    legally entitled to take um and members
  • 00:25:31
    of Congress in both parties particularly
  • 00:25:33
    Republicans but in both parties reacted
  • 00:25:35
    to that not very well as you might
  • 00:25:37
    imagine sort of wait a minute this this
  • 00:25:39
    this doesn't sound right to us that that
  • 00:25:41
    an international organization is
  • 00:25:43
    essentially telling the United States
  • 00:25:45
    what kinds of credits and incentives we
  • 00:25:47
    can offer um and so that again I
  • 00:25:50
    described sort of a slow motion train
  • 00:25:52
    wreck we've been watching this come for
  • 00:25:54
    a little while after uh president Trump
  • 00:25:57
    was elected in November and it was clear
  • 00:25:59
    that Republicans were going to have the
  • 00:26:00
    house and the Senate we certainly
  • 00:26:02
    expected there to be some I'm going to
  • 00:26:05
    call it muscular response yeah we didn't
  • 00:26:07
    expect I like I like that musular
  • 00:26:09
    response okay uh we didn't expect
  • 00:26:12
    however on the very first day of the
  • 00:26:14
    Trump Administration two executive
  • 00:26:17
    orders that specifically referred to
  • 00:26:20
    International tax initiatives the oecd
  • 00:26:22
    and essentially suggested that the
  • 00:26:24
    United States Was preparing to retaliate
  • 00:26:26
    against countries that were we're going
  • 00:26:28
    to adopt these measures which again were
  • 00:26:30
    viewed as infringing on our sovereignty
  • 00:26:32
    so the Trump Administration right out of
  • 00:26:35
    the gate fired its opening Salvo which
  • 00:26:38
    is to your point Kyle not only are we
  • 00:26:40
    not participating in this but we intend
  • 00:26:42
    to retaliate against other countries
  • 00:26:44
    that try and infringe upon our
  • 00:26:46
    sovereignty now the other real
  • 00:26:49
    protagonist in this in this situation
  • 00:26:51
    the other real party in interest is
  • 00:26:52
    really Europe it's the European Union
  • 00:26:54
    because members of the EU are obliged
  • 00:26:58
    as a result of an EU directive that was
  • 00:27:00
    adopted two years ago to implement
  • 00:27:03
    pillar two in their National laws so
  • 00:27:05
    here you go right you have the United
  • 00:27:07
    States in the former Administration
  • 00:27:09
    saying no can do we will not permit this
  • 00:27:12
    and we'll retaliate and the European
  • 00:27:13
    Union countries saying we don't have any
  • 00:27:16
    choice but to do this because we're
  • 00:27:17
    obligated under EU law to proceed with
  • 00:27:19
    this this is clearly setting up some
  • 00:27:21
    form of discussions that have to take
  • 00:27:23
    place but again we don't have a lot of
  • 00:27:25
    answers right now to how this can happen
  • 00:27:27
    and until we get in place in the
  • 00:27:29
    treasury Department right we don't even
  • 00:27:31
    have a deputy secretary in treasury yet
  • 00:27:32
    let alone an assistant secretary for tax
  • 00:27:34
    policy or some of these other people so
  • 00:27:36
    we're going to have to wait a little
  • 00:27:38
    while to see how this plays out but it's
  • 00:27:40
    clear that the the White House has
  • 00:27:42
    indicated right out of the gate things
  • 00:27:44
    have got to change and they've got to
  • 00:27:45
    change in a significant way Europe's
  • 00:27:48
    response to that is we're kind of jammed
  • 00:27:51
    with what we right what we have to do so
  • 00:27:54
    there's going to have to be some form of
  • 00:27:56
    discussion and accommodation here I
  • 00:27:58
    think it's going to take a while I mean
  • 00:27:59
    we I don't expect this to resolve itself
  • 00:28:01
    in the first half of this year I think
  • 00:28:03
    it'll linger through most of the year my
  • 00:28:06
    you know it could easily linger even
  • 00:28:08
    beyond the end of this year there's
  • 00:28:09
    nothing that says it has to be resolved
  • 00:28:12
    um but I I expect the United States is
  • 00:28:14
    going to continue to ratchet up the
  • 00:28:15
    pressure uh on Europe to essentially say
  • 00:28:18
    we need an outcome that's acceptable to
  • 00:28:19
    us and and doesn't result in an
  • 00:28:21
    infringement of our sovereignty yeah so
  • 00:28:23
    no look I think that super super
  • 00:28:25
    interesting and and one I mean obviously
  • 00:28:27
    it does sound like a a train wreck um a
  • 00:28:30
    lot certainly to watch here um and it
  • 00:28:33
    certainly highlights you know just the
  • 00:28:35
    challenges that this one of the things
  • 00:28:37
    that you and I were talking about prior
  • 00:28:38
    to to to us you know hitting record we
  • 00:28:40
    were talking about people aren't in
  • 00:28:41
    place yet right and that's the other
  • 00:28:43
    piece that's like this is tough to
  • 00:28:45
    predict and and people ask me a lot like
  • 00:28:48
    what what do I think is going to happen
  • 00:28:49
    at the SEC we you know the pcob and it's
  • 00:28:52
    like you can't predict because these
  • 00:28:53
    people are not in those positions yet
  • 00:28:56
    they have not appointed their senior
  • 00:28:57
    leaders and
  • 00:29:01
    time to figure out kind of what
  • 00:29:04
    theth that's Ahad so so as we wrap up
  • 00:29:07
    today's discussion um I I always I
  • 00:29:09
    always like that that we end by kind of
  • 00:29:11
    giving our listeners some advice on on
  • 00:29:13
    really how to to navigate um and moving
  • 00:29:15
    ahead with with all of this that's going
  • 00:29:17
    on and and maybe there's not a lot of
  • 00:29:19
    strategies or or best practices but what
  • 00:29:21
    would you recommend kind of being in
  • 00:29:23
    their shoes in the past um you know kind
  • 00:29:25
    of being at a lot of different angles
  • 00:29:27
    here you done it all in in this space
  • 00:29:30
    how can companies effectively navigate
  • 00:29:32
    the now and plan yeah so I think you
  • 00:29:36
    know as a former tax director one of the
  • 00:29:39
    things that you never wanted I never
  • 00:29:41
    wanted as a tax director was my CFO knew
  • 00:29:44
    more about a topic than I did or I was
  • 00:29:46
    caught flat-footed so I always tried to
  • 00:29:49
    sort of think through a range of
  • 00:29:50
    potential scenario outcomes and
  • 00:29:52
    basically try to model them out right
  • 00:29:54
    and not to say that any one of them is
  • 00:29:55
    going to be correct but I think I think
  • 00:29:58
    most of the folks in the world of
  • 00:29:59
    Finance in in companies they're very
  • 00:30:01
    quantitative people that's why they're
  • 00:30:02
    in finance right uh and so trying to
  • 00:30:05
    give people a range of potential
  • 00:30:07
    outcomes potential scenarios whether
  • 00:30:08
    you're talking about potential trade
  • 00:30:10
    policy issues and tariffs or you're
  • 00:30:12
    talking about you know potential
  • 00:30:13
    retaliation under pillar two effects of
  • 00:30:16
    your ETR if there's a restriction on the
  • 00:30:19
    deductibility of state and local taxes
  • 00:30:21
    all of these things lend themselves to
  • 00:30:24
    try and get some numbers around this so
  • 00:30:26
    that when the conversation happens with
  • 00:30:28
    Senior Management you're in a good
  • 00:30:29
    position to say here's what I think the
  • 00:30:32
    range is and frankly if you're a CFO I'd
  • 00:30:34
    be saying to my tax director I'm hearing
  • 00:30:36
    about all these things that are
  • 00:30:37
    happening but I have no idea how to talk
  • 00:30:39
    to investors about this I you need to
  • 00:30:41
    give me something that I can you know
  • 00:30:44
    some numerical range that I can speak to
  • 00:30:46
    so I think that's the best advice that I
  • 00:30:48
    can give right now I love it you know I
  • 00:30:50
    love it I and I think the other the
  • 00:30:51
    other thing is especially you know
  • 00:30:52
    thinking about just you know public
  • 00:30:54
    companies right is you know the the
  • 00:30:56
    obviously the influence of the board
  • 00:30:58
    right the audit committee they're
  • 00:30:59
    they're going to be asking these
  • 00:31:00
    questions as well um and and as you said
  • 00:31:03
    not only are in investors going to want
  • 00:31:04
    to know the story um the expectation of
  • 00:31:07
    the SEC and and of course people that
  • 00:31:09
    are you know the actual shareholders
  • 00:31:11
    they they want to read they want to know
  • 00:31:13
    and so they're going to expect
  • 00:31:14
    disclosures as well right what are the
  • 00:31:15
    risk here what are things that that you
  • 00:31:17
    could have a significant impact so a lot
  • 00:31:19
    of great stuff I really appreciate you
  • 00:31:21
    taking the time I know you're a busy man
  • 00:31:23
    these days um and expect to get busier
  • 00:31:26
    but just want to thank you for for
  • 00:31:27
    spending the time with us it was a
  • 00:31:28
    delight really appreciate the
  • 00:31:29
    opportunity thank
  • 00:31:31
    you that's our show for today tune in
  • 00:31:35
    next week for more fresh episodes so
  • 00:31:37
    that you never miss any of our audio
  • 00:31:39
    content follow the PWC accounting
  • 00:31:41
    podcast wherever you listen to your
  • 00:31:44
    podcast and to stay up toate on all our
  • 00:31:47
    latest accounting and reporting news
  • 00:31:49
    sign up for our newsletter at viewpoint.
  • 00:31:52
    pwc.com
  • 00:31:54
    from thought leadership at PWC I horn
  • 00:31:58
    thanks for tuning
  • 00:32:00
    [Music]
  • 00:32:05
    in this podcast is brought to you by PWC
  • 00:32:08
    All Rights Reserved PWC refers to the US
  • 00:32:11
    member firm or one of its subsidiaries
  • 00:32:13
    or Affiliates and they sometimes refer
  • 00:32:16
    to the PWC Network each member firm is a
  • 00:32:19
    separate legal entity please see
  • 00:32:23
    www.pwc.com slst structure for further
  • 00:32:26
    details this pod is for general
  • 00:32:29
    information purposes only and should not
  • 00:32:31
    be used as a substitute for consultation
  • 00:32:33
    with professional advisers including
  • 00:32:36
    accountants and lawyers
Tags
  • US tax policy
  • Tax Cuts and Jobs Act
  • Reconciliation process
  • Corporate tax rates
  • Individual tax cuts
  • Environmental initiatives
  • Global Minimum Tax
  • Tax legislation
  • CFO strategies
  • Tax scenarios