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House Proposes Tax Reform Plan
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.
Deferred Compensation and Nonqualified Pensions Eliminated
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