A modified Senate Republican tax reform bill is expected to include the repeal of the Patient Protection and Affordable Care Act’s (ACA) individual mandate. Several GOP senators announced the inclusion of the repeal provision in a modified bill on November 14 while the Senate Finance Committee (SFC) briefly recessed its day-long markup of Republicans’ tax reform proposal. The SFC began its markup of the Chairman’s Mark to the Tax Cuts and Jobs Bill on November 13.
The Congressional Budget Office on November 8 reported that repealing the individual mandate would reduce coverage, but it would also reduce federal deficits by over $300 billion between 2018 and 2027.
Meanwhile, House Republicans are moving forward in their tax reform efforts. The House Rules Committee is scheduled to take up the House tax reform bill (HR 1) one day early, on November 14 at 6:30 p.m., labeling it an “emergency meeting.” Reportedly, the committee was asked to push up consideration of the bill so that a House debate and vote could take place during daylight hours, rather than spill over into the evening. The bill is scheduled for a House vote on November 16.
We will keep you informed as this major piece of tax legislation makes it way through Congress. We are already formulating the necessary tax strategies pending final approval. If you have any questions in the meantime, please do not hesitate to contact us.