Wednesday, June 14, 2017
Reuven S. Avi-Yonah (Michigan) & Gianluca Mazzoni (S.J.D. 2017, Michigan), The Trump Tax Reform Plan: Implications for Europe:
On April 26, 2017, the Trump administration unveiled a one page tax reform outline (the “Trump Plan”) that differs significantly from the tax reform plan proposed in June, 2016 by the House Republicans (the “House Blueprint”). The two most important changes are deleting both the cash flow element and the destination based element of the House Blueprint. These changes have significant implications for European foreign direct investment (FDI) into the US and for US FDI into Europe.
In this paper we will first discuss provisions that are similar between the House Blueprint and the Trump Plan, and that are therefore likely to be included in final tax reform legislation. We will then discuss the differences, and finally conclude by discussing implications for FDI.