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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:

www.bit.ly/28VOwvf

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

$

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