This post was updated on November 20, 2017 to reflect the most recent state of the legislation.
On November 16, 2017, the House of Representatives voted on and passed the Tax Cuts and Jobs Act. If passed by the Senate, the Act would significantly change the current federal income tax regime in the United States. The legislation would impact all levels of the U.S. economy. The final version of the Tax Cuts and Jobs Act passed by the House is the culmination of a series of negotiations and amendments to the original version of the Act that was released by the House on November 2, 2017. The attached chart summarizes key aspects of the Tax Cuts and Jobs Act passed by the House today.
In parallel track, the Senate is working on its own version of tax reform, taking as its starting point the original Tax Cuts and Jobs Act proposed by the House. The Senate Finance Committee voted to approve its tax reform proposal on November 16, 2017, and the Senate is expected bring the proposal to the floor for a vote when it returns from Thanksgiving recess. Although the Tax Cuts and Jobs Act shares many similarities with the current Senate proposal, key differences remain to be resolved. The attached chart summarizes the current state of the Senate’s proposed tax reform, in comparison with the just-passed Tax Cuts and Jobs Act.
In order for any tax reform to become law, a final Act must be agreed upon and passed by both the House and the Senate. We will provide updates as the legislation advances.