Hill Briefs: Trier Returns to Davis Polk; Tax Cut Math

A former top Treasury official returns to the private sector after making critical comments about provisions in the tax overhaul; the Urban-Brookings Tax Policy Center projects about 65 percent of taxpayers will get a tax cut this year.

Trier’s Next Steps

Former Treasury Department official Dana Trier is returning to private practice after leaving his government post because of comments he made criticizing aspects of the tax law.

Trier, who was deputy assistant secretary for tax policy until he left in February, was tasked with overseeing the regulatory process implementing the 2017 tax act. He has joined Davis Polk & Wardwell LLP’s Tax Department in New York as counsel, according to a March 28 statement from the firm.

Trier was a partner in Davis Polk’s Tax Department from 1998 to 2008, where he focused on corporate finance, derivatives, structured finance, and corporate transactions, including mergers, acquisitions, joint ventures, and spinoffs.

“I look forward to rejoining the superb tax group at Davis Polk and working with clients on their most complex tax issues,” Trier said in the statement.

Tax Cut Analysis

Nearly two-thirds of taxpayers will see a tax cut in 2018, with about 6 percent seeing increases this year, according to analysis from the Urban-Brookings Tax Policy Center.

The people receiving tax cuts or larger refunds are concentrated in the top quintile of taxpayers, the research found. According to the analysis, 89.8 percent of taxpayers in the top 20 percent will receive a tax cut, while 27 percent of households in the bottom quintile will see a decrease in tax liability or an increase in their refunds.

The size of the cut also varies by state. The individual income tax cut will average about 1.8 percent across states. Residents in Alaska, Louisiana, North Dakota, South Dakota, Texas, Washington, and Wyoming will see the biggest tax cuts, exceeding 2.1 percent of after-tax income. California, New York, and Oregon taxpayers will get the smallest tax cuts, falling short of 1.5 percent, according to the March 28 analysis.

To contact the reporter on this story: Laura Davison in Washington at ldavison@bloombergtax.com

To contact the editor responsible for this story: Meg Shreve at mshreve@bloombergtax.com