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“Scream” for Tax Reform

 

I can’t believe it has been 21 years since the Ghostface character caused havoc in the fictional town of Woodsboro in the movie Scream.  “What’s your favorite scary movie?” That question launched one of the most successful horror movie franchises in history.  It’s that time of year to put on your favorite scary movie and enjoy the season.  Some days it seems as if watching the news can have the same effect!  A well-crafted horror scene creates plenty of suspense and a fear of the unknown.  The proposed tax reform framework that came out recently can create some of those same feelings of the unknown.  In my opinion, some of the high-level ideas of fewer brackets, lower corporate tax rates (including pass-through entities), allowing business to deduct expenses the year they take them, doing away with the AMT, and several other points could offer great benefits to the economy while helping to simplify the tax code.  Companies will be incentivized to hire more workers and make more investments that directly help economic growth.  There are still plenty of unknowns associated with the reform, but just like Scream kept me on the edge of my seat all those years ago when the protagonist heard “Hello Sidney” through the phone, I’ll be excitedly awaiting the result of the proposed tax reform!

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