It has been no secret that the tax code was headed for a big shakeup in 2017. Both presidential candidates, as well as many members of both political parties, acknowledged the need for reform. Many politicians and business leaders consider the current corporate tax system to be a detriment to U.S. competitiveness since the top rate of 35% is the highest in the industrialized world. Including state and local taxes, corporate rates can exceed 39%.

The best way to prepare is to stay informed of the process and consider likely tax reform outcomes when developing capital budgets and business strategy. By midyear it should be much clearer if and when reform will be passed, which features are likely to be included, and whether they’ll be applied to 2017, 2018, or beyond. The results may impact capital investment, capital structure, subsidiary location, repatriation, and other decisions.