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The Trump Administration and the Senate Finance Committee proposed tax reform that may be the largest tax law changes since 1986’s Tax Reform Act.

Tax Reform

The tax reform process continues to move forward with unprecedented speed.  The Republican leadership and the Administration are “on schedule” for their desired enactment of The Tax Cuts and Jobs Act before Christmas, specifically, on or before December 22.  

The bill is now being considered by a conference committee, which is addressing differences between the House and Senate approaches.  Once there is agreement on a total bill, votes will be taken by the House and Senate on the final language, and if approved by both (as anticipated), the bill will be sent to the President for his signature.

On December 13, it was announced that Congressional Republicans had reached an agreement in principle.  While details of the final bill are still being negotiated, it is said to include the following: (1) a reduction in the corporate tax rate to 21%; (2) a reduction in the top individual tax rate to 37%; (3) a 20% deduction on pass-through business income, with that deduction extended to trusts; (4) the repeal of the corporate alternative minimum tax; (5) keeping but modifying the individual alternative minimum tax; (6) limiting the combined deduction for state and local income taxes and property taxes to $10,000; (7) lowering the cap on the mortgage interest deduction to $750,000 of indebtedness; and (8) repealing the Affordable Care Act individual mandate.

At the present time, the plan is for a conference report (including the final bill language) to be issued on Friday December 15, with the Senate voting on December 19 and the House voting the next day.    That is of course subject to change as circumstances require.

EisnerAmper will continue to keep you informed of future developments with respect to this tax reform initiative.

EisnerAmper Tax Reform Publications