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The Trump Tax Reform Plan: Implications for Europe

14 Pages Posted: 4 Jun 2017 Last revised: 29 Jun 2017

Reuven S. Avi-Yonah

University of Michigan Law School

Gianluca Mazzoni

University of Michigan at Ann Arbor - Law School - SJD Candidate

Date Written: May 30, 2017

Abstract

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.

Keywords: tax reform

JEL Classification: H26

Suggested Citation

Avi-Yonah, Reuven S. and Mazzoni, Gianluca, The Trump Tax Reform Plan: Implications for Europe (May 30, 2017). U of Michigan Law & Econ Research Paper No. 17-009; U of Michigan Public Law Research Paper No. 559. Available at SSRN: https://ssrn.com/abstract=2977370 or http://dx.doi.org/10.2139/ssrn.2977370

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Gianluca Mazzoni

University of Michigan at Ann Arbor - Law School - SJD Candidate ( email )

Ann Arbor, MI
United States

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