NUMBER OF THE WEEK: 14.9 percent

The rate of the flat tax proposed by Republican presidential candidate Dr. Ben Carson last week when announcing his comprehensive plan for tax reform. By certain measures, Carson’s plan is perhaps the most far-reaching of the GOP tax policy proposals out there. Carson is the first Republican candidate to announce that he would eliminate all deductions and loopholes without exception — including deductions for mortgage interest and charitable donations. Check out the Presidential Tax Talk section below for additional details on Carson’s plan.

Be sure to look out for McGuireWoods’ special tax policy report for the 2016 presidential elections this Thursday, when the GOP candidates take the debate stage in South Carolina.

LEGISLATIVE LANDSCAPE

We Are Family: Republicans to Hold Legislative Retreat. Following President Obama’s final State of the Union address, Republican lawmakers will depart Wednesday for their annual legislative retreat in Baltimore. House Speaker Paul Ryan will be hunkering down with members to nail down a legislative agenda and strategy for a busy election year. The conservative wing of the party will be pushing GOP leaders to work out a comprehensive plan for tax reform and an alternative solution to Obamacare. There will also be calls to return … 

Boustany Seeks to Delay Country-By-Country Reporting. On Dec. 22, Rep. Charles Boustany introduced legislation to delay the country-by-country (“CBC”) reporting of U.S. companies from the Treasury Department …

House Repeals Large Portion of Obamacare under Reconciliation. The House passed, 240-181, a budget reconciliation bill that would repeal major provisions under the Affordable Care Act, including the medical device tax and Cadillac tax. As expected, President Obama rejected the legislation. Republicans in both the House and Senate do not currently have the necessary number of votes to override the presidential veto. Below is a review of the key tax provisions …

PRESIDENTIAL TAX TALK

It Takes a Brain Surgeon: Carson’s Flat Tax. Under Carson’s proposal, a 14.9 flat tax would be applied to income above 150 percent of the federal poverty line. Americans who fall below that threshold would still have to pay some unspecified …

Clinton Unveils “Fair Share Surcharge”: As promised, the Hillary Clinton campaign released details on a new 4 percent surtax on Americans with annual incomes over $5 million. The so-called “Fair Share Surcharge” would only be applied to about 0.02 percent …

REGULATORY WORLD

Obama Administration to Do More on Inversions. The Obama Administration and the Internal Revenue Service are moving forward with plans to try to preserve the U.S. corporate tax base. The IRS is expected to continue its efforts to curb inversion transactions by issuing guidance to address earnings stripping. In addition to the anti-inversion guidance, the following issues are also likely to be a …

LINE ITEMS

  • House Ways and Means Chairman Kevin Brady would like the committee to move forward with an international tax reform proposal this year. At POLITICO’s State of the Union preview event on Monday, Brady told the audience that Republicans would focus on the international portion of reform, hoping to prepare the way for a comprehensive overhaul in 2017.
  • The IRS released Revenue Procedure 2016-3 and Revenue Procedure 2016-7, which detail the tax issues that the IRS would not be issuing private letter ruling requests. Of note, the revenue procedure reflects its guidance issued earlier in 2015 that certain requests for rulings regarding spinoffs would not be addressed.
  • The Joint Committee on Taxation released a list of tax provisions set to expire in the next ten years — these include FAA, highway, and healthcare-related provisions.

LOOKING AHEAD

Relevant Congressional Activity

Wednesday, 1/13

GOP Annual Legislative Retreat 

Republican lawmakers gather in Baltimore for a 3-day legislative planning session.

Relevant Agency Activity

Friday, 1/15

Internal Revenue Service 

[CANCELED] The IRS holds a meeting for determining when a payment made pursuant to certain financial products will be treated as a dividend equivalent for purpose of section 871(m). For more information, contact Oluwfunmilayo Taylor, 202.317.6901.

Other Activity

Wednesday, 1/13

Woodrow Wilson Center 

The WWC holds a discussion on “The Economic and Strategic Benefits of the Trans-Pacific Partnership.” Read more here.

University of Maryland

The School of Public Policy holds its 12th annual forum on “Financial Information Systems and Cybersecurity: A Public Policy Perspective.” Read more here.

Thursday, 1/14

Lame Duck Washington: Expert Insights on the 2016 Agenda 

Bloomberg Government holds a webinar on tax reform, energy, and healthcare. Read more here.

U.S. Chamber of Commerce

The U.S. Chamber will hold a news briefing following the “2016 State of American Business Address.” Read more here.