Tax Update: Tax Reform Bill Passed by House and Senate Finance Committee
According to a recent press release from the House Ways & Means committee, the House has passed the legislation to overhaul the U.S. tax code. The Tax Cuts and Jobs Act is expected to deliver tax relief to families across the country. More specifically, per the recent update, this bill will give a typical middle-income family of four earning $59,000 a tax cut of about $1,182. Many of the provisions per this act will be effective for tax years beginning after 2017.
Shortly after the House passed its bill, the Senate Finance Committee advanced its rendition of the tax reform legislation. Utah Senator Orrin Hatch believes the legislation to be “the most comprehensive tax reform bill in a generation.”
The chart below provides a comparison of the reform specified within each of the two recently passed Bills (click to enlarge):Both Bills still face obstacles, as Republicans will need align the two and reconcile any major differences to push it forward. Lawmakers maintain an objective to have a reconciled bill presented to President Trump by the end of the 2017 calendar year.
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Here at FF&F we are committed to keeping a close watch on any and all regulatory and legislative changes that could affect our clients. We will continue to provide updates as the proposed reform plan reaches further development. We encourage you to contact us with any questions or concerns you may have related to these changes and how they might affect you individually. For such inquiries, or for information about our services, please contact us at firstname.lastname@example.org or (212) 245-5900.
Deven M. Conner, CPA, EA is a Tax Professional with FF&F. He is an IRS Enrolled Agent and has over 10 years of combined tax and public accounting experience comprised of family office groups, private equity firms, and forensic accounting. Deven has a strong background in individual, fiduciary, and partnership taxation. His diversified experience in the private and public sectors, which include a Big Four firm and top mid-size public accounting firm, serves as a solid foundation for his unique and comprehensive understanding of taxation.