GOP TAX PLAN MOVES TO TRUMP FOR SIGNATURE, HERE'S HOW IT IMPACTS OUR INDUSTRY
By
Texas Food and Fuel Association
12/21/2017
Congressional tax negotiators released the final version of tax reform this past Friday evening, December 15. The previous versions passed by the House and Senate were largely a mixed bag of results for the convenience retailing industry. The Conference report, at least at first glance, appears to be mostly positive.
The bottom line for many companies is the new tax rates. For corporations, the package reduces the tax rate to 21%. That’s up 1% from both the previous House and Senate versions but goes into effect immediately next year rather than being delayed by a year as the Senate bill had done.
For their part, pass-through entities seem to fare pretty well in the final version. The bill follows the previous Senate version more closely than the House’s in that it provides a deduction for qualified business income for pass-through taxpayers. The deduction is down to 20% from the 23% found in the Senate bill, however, the final version also lowers the top personal income tax rate to 37%. The result should put the marginal tax rates paid by pass-throughs fairly close to on par with the marginal tax rates paid by corporations. It’s also important to point out that pass-throughs formally owned by estates and trusts are eligible for the tax deduction under the final version, marking a significant change from the Senate version.
Here is a quick rundown of how some of the other issues important to our industry fare in the final package:
