Our tax consulting partner, Sandra E. Schultz, CPA, shared a post on her site recently that reviews the tax reform provisions that were included in the house bill (HR1) that passed both the House and Sentate recently. Please see below for more information and a comparison chart.
Provisions: This is a synopsis of some of the provisions included in the House bill (HR 1) that was passed by a vote of 227 to 205 on November 16, 2017, and the Senate’s version of the bill as passed on December 2, by a vote of 51 to 49 – both along party lines. This synopsis does not include any conference amendments made after the December 2nd Senate version.
There are significant differences between the two bills, and both the House and Senate must pass the same legislation before it can be sent to the president for a signature. This involves a reconciliation process between the two houses of Congress. Most sources expect that most of the provisions of the Senate version will prevail during the reconciliation process in an effort to get the legislation pushed through before Christmas.
- Both bills cut both individual and corporate tax rates
- Both bills largely repeal the state and local tax deduction
- Both plans increase the standard deduction
- Only the Senate bill repeals the Affordable Care Act requirement that individuals buy health insurance
- The conference committee will reconcile the two bills for a final vote and signature from the President
Link to original post can by found here.
Written by Sandra E. Schultz, CPA