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House Proposes Tax Reform Plan

By Lawrence L. Bell
April 02, 2015

In an attempt to raise revenues and simplify the tax code, the House Ways and Means Committee has proposed a draft tax reform plan containing sweeping changes to the Internal Revenue Code (the Code), including a number of major executive compensation and benefits changes. The most significant of those could be the elimination of deferred compensation and nonqualified pensions. In light of the Congressional deadlock ' and the President's wielding of “the pen” ' it is unlikely the bill will become law this year. Once a bill is submitted, it takes on a life of its own. In addition, the revenue-raising nature of many of the proposed compensation and benefits changes could be attractive to Congress.

Major changes are summarized below.

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