2017Issue3_Alabama_v4

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Of course, Figure 1 just gives you the dollar
amount that the BAT will add to your tax
bill. The other pieces of the House blueprint
will also need to be modeled or considered to
give an overall picture of what the proposal
might mean for a company.
So a more complete model might look like
Figure 2. ■
Note: Pass through owners may also want to
consider that the House plan will also repeal
the estate tax and the impact that might have
on their planning and expenses.
This initial House Republican tax reform
blueprint is available at:
House Proposal with additional Provisions
Income Subject to Federal Tax
(Current Law) $
Add COGS for Imports + $
Subtract Current Export Income – $
Add Interest Deduction Taken + $
Subtract Capital Investments
(100% Expensing) – $
Add Other Deductions
(Other than R&D credit) + $
Subtotal - Income Subject
to Federal Tax
$
Tax Rate (20% or 25%) – $
Federal Income Tax Owed $
Figure 2
25 ALABAMA GROCER |