CCH Tax Day Report
President Trump has nominated David J. Kautter to be the Treasury’s next assistant secretary for tax policy, the White House announced on May 10. Kautter’s current position is partner-in-charge with RSM US LLP, a tax and consulting services firm. Previously, Kautter served as the managing director of Kogod Tax Center, an independent tax research institute located at American University’s Kogod School of Business, and spent over 30 years at Ernst & Young LLP (EY), where he served as director of national tax for over 13 years, the White House noted.
Kautter would succeed Mark Mazur, who served under the Obama administration. Thomas West currently serves as acting assistant secretary for tax policy.
Kautter’s tax policy views are said to be in-line with the Trump administration’s. Kautter testified before the House Small Business Committee in 2014 that ” the country would be better served if “corporate tax reform” is approached as “business tax reform.”” In his 2014 testimony, Kautter proposed that Congress should consider a single tax rate schedule for all business income regardless of what legal form a business uses.
Trump’s tax plan, among other things, proposes a 15-percent tax rate for all businesses (TAXDAY, 2017/04/27, W.1). “Given the importance of small businesses to our economy, it makes little sense that income earned by unincorporated businesses (which tend to be small businesses) is subject to tax at the higher individual rates while income earned by corporations is taxed at lower corporate rates,” Kautter testified.
“Dave Kautter brings a number of important attributes to the job of Assistant Secretary for Tax Policy, ” former Treasury Assistant Secretary of Tax Policy Michael Mundaca, co-director of National Tax and co-director of the Americas Tax Center for EY, said in a statement on May 11. “He has the people skills to interact successfully with the various stakeholders in the tax reform process, including working with others at Treasury, the White House, Republicans and Democrats on the Hill, and the public.”
By Jessica Jeane, Wolters Kluwer News Staff