UPDATE: The GOP Tax Reform Bill on Two Different Paths
As predicted the House and Senate versions of the Tax Reform Legislation are drifting apart in similarity. What happens when these versions meet could spell disaster if concessions cannot be made on the two versions. An example where the two chambers have yet to be on the same path of thinking would be the eventual elimination of the estate tax. The House version calls for the paced elimination of the estate tax, whereas in comparison the Senate version only seeks to limit the number of people who pay the estate tax.
Another area is the number of tax brackets, where the House version that the public has seen creates 4 tax brackets, leaving the highest income bracket still in place for the top 1% of income earners in the US, and lowers the income tax rate for the lower 3 pursuant to the income they make being single or married. The Senate version looks to create more than just 4 tax brackets, leading to wonder what breaks in income taxes will be in place for taxpayers.
Finally further splitting of the two bills comes into a controversial tax excised on businesses making payments to foreign entities. The House provision would impose an excise tax of 20% on payments made by American companies to foreign affiliate
s, in an effort to prevent firms from shifting profits abroad. American multinational corporations say the tax will wind up harming American companies and their consumers and drive up prices. The Senate version looks to remove this provision completely.
These are just a few examples of the different paths the GOP Tax Reform bill is currently being traveled by the two chambers. The professionals at the Center are ready and available to answer any questions you may have, feel free to contact us and look for further postings of the negotiations coming on this tax reform.