It's About to Hit the Fan
Last week I reported on a late night meeting in the Senate that supposedly breathed life into the Health Care Replacement Bill known as the Better Care Reconciliation Act (BCRA) and now we know this morning that the meeting did in fact produce some results.
This afternoon, the Senate is expected to vote on the ability for the Bill to move forward for debate and an open amendment process. If the Bill were to move forward into the open amendment process, then I think it becomes very interesting as to what happens to the couple of tax provisions that we are watching very closely. Does this produce amendments that remove the 3.8% net investment income tax, and/or the 0.9% Additional Medicare Tax as the House did in the American Health Care Act (AHCA) that they previously passed – or will we end up with some tax relief in the tax reform that we expect to see in September now.
Both of those taxes have a major impact in the sale of a business or in the planning for Business Succession, and the current plan for the Senate if the bill were to go forward this afternoon would be to amend the bill for a full repeal that would then be delayed for 2 years. Thus it is possible we could have the effects of these taxes for at least 2 additional years.
Regardless of political views – today marks another crucial intersection for health care and tax reform.
We here at The Center specialize in preparing and implementing Succession Plans for privately held Companies all over the United States. If you would like more information on how to start your planning, please contact us at 618-997-3436 or check us out on the web at www.taxplanning.com.