Locke Lord Tax Department Co-Chair Karl Fryzel Comments on Trump Administration’s Tax Reform Proposal in Law360

Boston’s Karl Fryzel, Co-Chair of Locke Lord’s Tax Department, commented on the tax reform proposal the Trump administration released on Sept. 27. The Trump administration and congressional Republicans came to an agreement on a broad outline for how to revamp the federal tax code, including a proposal to allow full expensing of depreciable assets except buildings and other property-based structures for at least five years, while imposing a limitation on the tax deduction for the interest expense of debt financings.

Fryzel noted: “Using the word limitation leaves an awful lot on the table as to what they could possibly do. It seems the reason for limiting interest deduction is to help pay for some of the tax incentives they’re putting into the new corporate tax regime. So I think it’s going to be a question of what kind of limitations will produce the kind of revenue offset that they need to pay for some things like expensing equipment for five years.”