Takeaway: Congress passes tax reform.
On December 19th and 20th the House and Senate both voted along party lines to pass the final version of the tax reform bill. The House approved the bill in a 227-203 vote. The Senate approved their bill, in the early hours of Wednesday morning, in a 51-49 vote. The bill will now go back to the House for a final vote before heading to President Trump’s desk.
To see changes in the final bill, check out this chart.
To see an estimate of what this bill might mean to your personal taxes, check out this New York Times calculator.
Takeaway: Senate Tax Bill expected to receive final vote this week.
The Senate Tax Bill cleared an important procedural vote yesterday, November 29th. In a 52-48 vote the Senate voted along party lines to begin debate on the tax bill and plan to vote on its final passage by the end of the week. However, the bill will face a wave amendments on the floor, as some Republicans agreed to move the bill forward only if they were able to offer amendments.
One such amendment will come from Senator Bob Corker, (R-TN) who wants to place a “trigger” in the bill that stalls the tax cuts if economic growth does not make up for the $1.5 Trillion the bill is expected to add to the national deficit.
A key holdout on the bill, Senator John McCain (R-AZ) announced his support for the bill today. The Senate plans to take a final vote on Thursday or Friday.
Takeaway: The House passed its Tax Reform bill yesterday afternoon, November 16th, in a 227-205 vote. 13 Republicans voted against the bill, and no Democrats voted for it. You can see a full list of who voted for and against the bill here.
The Senate bill is expected to face far more opposition; a provision to eliminate the Affordable Care Act’s individual mandate, which requires individuals to purchase health insurance, was attached to the Senate’s tax bill this week. The Senate Finance Committee approved the bill late yesterday, November 16th, and Majority Leader Mitch McConnell plans to begin floor debate when Congress returns from Thanksgiving.
If the Senate is able to pass their bill, the House and Senate versions will go to a conference committee where the two versions will have to be reconciled.
Leadership in both Chambers plan to pass the bill through the reconciliation process, which allows the Senate to a pass a bill with a simple majority of 51 votes, instead of the usually required 60.
Takeaway: Tax Reform is moving quickly through Congress. Check out this matrix by the Tax Foundation for differences between the House & Senate bills.
Congress hasn’t attempted tax reform in more than three decades, and the time is ripe for the business community to advocate for changes you want to see in the final plan. Both the House and Senate versions of the Tax Cuts and Jobs Act are moving quickly through the legislative process, so we’ll be updating this blogpost to provide new links and resources that will keep our investors up-to-date on versions of the bill.
House: The House bill was changed in committee last week, and Speaker Paul Ryan (R-WI) has said that the House will vote on the bill Thursday, November 16th. President Trump will make a visit to Capitol Hill to meet with Republican lawmakers ahead of the vote to advocate for the bill. The House version has received broad support from the businesses community, including support from the U.S. Chamber and NFIB.
Senate: The Senate Finance committee released their tax bill last week, and it is currently making its way through the markup process. The Senate plans to vote on the bill when they return from Thanksgiving.
The Tax Foundation has provided a handy side-by-side on differences between the House and Senate versions.
The U.S. Chamber is also tracking progress on the tax reform bills with their version of a Domino’s Pizza Tracker (pictured below).
We’ll continue to update this blogpost with the latest and greatest on what’s happening with tax reform. In the meantime, we want to hear from you on how the proposed changes could affect your business. Please contact us with any questions or concerns you have about tax reform. Now’s the time to get your slice of the pie; you may not have another opportunity for three more decades.