On November 16, the House of Representatives passed their tax reform proposal, the “Tax Cuts and Jobs Act” (H.R. 1), bringing Congress one step closer to reforming the U.S. tax code. The Senate plan also continues to move forward, securing its passage in the Senate Finance Committee on the same day.
These bills differ in several respects, including individual tax rates, itemized deductions, estate and GST taxes, timing of corporate tax rates, and pass-through tax rates. Additionally the Senate has added a modification to their proposal that would reduce the Patient Protection and Affordable Care Act individual mandate to zero. There are also other changes to rates, child tax credits, pass-through provisions and international tax.
At MFA, we continue to monitor these reform developments closely, and will share our insights as appropriate to assist you in determining the potential and eventual impacts on both your personal and business tax obligations. Our side-by-side comparison below highlights key provisions from the House and Senate proposals with regard to individual tax reforms. For a comparison of business tax proposals, click here.
If you have any questions regarding these impending tax reform changes, please contact us.