In August, the House of Representatives and the Senate passed an approximately $3.5 trillion budget resolution. They assigned the House Ways and Means and the Senate Finance Committees with the task of coming up with enough tax changes and increases to cover the cost.
On Sept. 13, the House Ways and Means Committee released their proposed tax reform legislation. While the proposed tax reforms are subject to change, the proposal largely keeps intact the framework established in the 2017 Tax Cuts and Jobs Act (TCJA). This proposal instead touches on a wide range of tax issues including changing tax rates and altering selected provisions of the Internal Revenue Code.
This is the first step in a multi-step process that will need to be completed before any of the proposed legislation becomes law and it is likely that significant changes will be made during the process. The tax proposals next go to the House Budget Committee to be added to the rest of the $3.5 trillion reconciliation bill. It is important to recognize that, given the steps left to be completed in the process, these tax changes may never become law in their current proposed form.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett.