The tax reform efforts remain in full swing in Congress. Both the House and Senate bills offer substantial changes to current tax law. The proposed bills also diverge in significant areas. In the event both these preliminary House and Senate bills pass their respective chambers, the differences will need to be resolved for a final vote on a consistent bill in both chambers. Major differences in the two proposed bills include:
- Individual tax brackets
- Type of income eligible and rate of tax for special lower tax rate for passthrough entities
- Permanence of individual tax measures
- Mortgage interest deduction for individuals
- Initial year of lower corporate tax rate
- Elimination of estate tax
We have outlined the key provisions affecting business owners, executives and high net worth individuals in the chart attached. We will provide an updated alert in the event a final tax reform bill is passed and enacted into law.
All changes to tax law to start in 2018 unless specified otherwise.
Senate proposal – Chairman’s mark released on November 13, 2017
House bill – H.R. 1, Tax Cuts and Jobs Act
If you have questions about how the tax reform may impact you, contact us at 330.867.7350.