On November 2nd, House Republicans released their proposed tax reform bill “Tax Cuts and Jobs Act” (the Act) that would enact sweeping changes to the US tax code. While tax reform legislation enactment is by no means certain, now is the time to start reviewing these upcoming proposed changes so that you are in the best position to leverage your tax situation, when and if, this tax reform is passed.
Revisions are expected, and it is uncertain as to whether the bill will pass. One of the biggest hurdles is finding ways to increase revenue to offset these business and individual tax rate cuts. However, House members narrowly (216-212) passed a budget resolution with a simple majority, which will allow the tax bill to pass Congress. On November 16th, the House passed their version of the Act and on that same day, the Senate Finance Committee passed their version. The Senate Budget Committee, on November 29th, approved a measure that allows debate to begin on the Act. A final vote is anticipated to occur as early as December 1st.
If the Republicans manage to pass tax reform by this self-imposed deadline, they will set a historical record for passing a 429-page document that affects all aspects of US economy within two months.
The following are a few key tax points to consider in both the House and Senate versions:
Bonadio is closely monitoring the proposed tax reform legislation. We will keep you apprised of changes and implications as the process develops. If you have any questions, contact your Bonadio tax team.
Heather Leggiero is a partner based out of our Albany, NY office.