In our last post, we began looking at some of the changes expected to occur with tax reform in the Trump presidency. As we noted, reduction of corporate income tax rate, ending taxing of overseas income returned to the United States, and implementing a border adjustment tax are all reportedly part of Trump’s plan, and these policies will impact many U.S. businesses.
Another change expected to come for businesses is full expensing of business investments. Under this reform, should it pass, businesses would be able to deduct the value of investments in new business the year the investments are made instead of over a longer period of time. The effect of the change is that it will reduce the cost of capital investments.