1. What to Expect from the New Administration
Jonathan Eisen
Senior Vice President, Government Relations
International Foodservice Distributors Association

2. Overview Huuuuge Changes in Washington
Opportunities and Challenges for Foodservice
Major Learning Curve in the White House
Big Issues to Tackle
State and Local Activity Likely to Increase
Aggressive Progressives

3. The Trump Administration The First Month
Big priorities/Unclear Approach
Executive Actions
Slow Appointments Process
Uniting Democrats

4. Congressional Agenda Congressional Review Act
Obamacare Repeal and Replace
Employer mandate?
Supreme Court
Filibuster future?
Infrastructure
Pay fors?
Tax Reform
Process

5. Obamacare Repeal and Replace
Key to Trump and Republican Congressional Agenda
FY 2017 Budget
Allows for Reconciliation
51 votes in the Senate
Policy Flashpoints
Medicaid Expansion
Subsidies v. Tax Credits
Individual and Business Mandate
Interstate Insurance
Health Savings Accounts
You Broke It, You Bought It

6. House Republicans’ Tax Blueprint
Comparison of House GOP tax framework and current law
Issue
Current law
House Republicans
Corporate tax rate
35% statutory rate
20% statutory rate
Corporate tax:
International income
Foreign profits are subject to US corporate tax when repatriated
One-time 8.75% tax on liquid assets already overseas; 3.5% tax on money invested abroad
Corporate tax: pass-through business income
Taxed under the individual rate structure; maximum rate of 39.6%
Taxed at a maximum rate of 25%
Interest deductibility
All interest paid during a tax year on business-related debts may be deducted as a business expense
Interest expense can be deducted against any interest income, but no current deduction is allowed for net interest expense. Net interest expense may be carried forward indefinitely against net interest income
Net operating loss
Can be carried back to the two previous years or carried forward for the next 20 years
Can be carried forward indefinitely, limited in any year to 90% of the net taxable amount for that year; carrybacks of net operating losses will not be allowed
Border adjustment
None
Exports are tax-exempt, imports are taxed
Alternative Minimum Tax (AMT)
A second tax system, in which taxpayers compute both their regular income tax and AMT, paying the greater of the two
Eliminate Alternative Minimum Tax
Estate tax
Top statutory rate of 40% applied under specified circumstances to transfers of wealth when a person dies
Eliminate estate tax
Source: National Journal, House of Representatives GOP, “A Better Way: Tax,” June 24, 2016.

7. A destination-based cash flow tax uses a border adjustment to exempt exports from domestic taxation
Explanation of destination-based cash flow tax system
Revenue from the sale of US goods to nonresidents (exports) would not be included in taxable income
Cost of goods purchased from nonresidents (imports) would not be deductible from taxable income
A destination-based cash flow tax is applied where a good ends up, rather than where it is produced.
Essentially, cross-border transactions are ignored when calculating a corporation’s tax base.
Source: National Journal, Kyle Pomerleau and Stephen J. Entin, “The House GOP’s destination-based cash flow tax, explained,” Tax Foundation, June 30, 2016.

8. Other Key Federal Issue Status
Overtime
NLRB
Ambush election
Joint employer
Food Safety Modernization Act
Menu labeling

9. Two Different Countries

10. Minimum Wage and Tip Credit

11. Trending Issues Impacting Operators State and Local
Scheduling
Advance notice
Compensation for changes
Paid Parental Leave
Paid Sick Leave
Ban the Box
Credit History
Worker Protections
Franchisee/Franchisor
Marijuana

12. Looking Ahead Trump’s long-term ambitions GOP window?
Realigning government
Enacting legislation
Federal fiscal challenges
GOP window?
2018 Senate election
Energized progressives
State and Local Democrats
Tea Party of the Left?

13. Thank You!
Jonathan Eisen Sr. Vice President, Government Relations International Foodservice Distributors Association