Senate and House Republicans have reached agreement on a unified tax reform proposal, according to Senate Finance Committee (SFC) Chairman Orrin G. Hatch, R-Utah.
Hatch confirmed the agreement just prior to the start of the Senate and House conference committee public meeting on the Tax Cuts and Jobs Bill (HR 1). Hatch said he was heading to the White House to discuss the details with President Trump but did not himself confirm any of the provisions.
The new tax reform plan would reportedly propose a 21 percent corporate tax rate that would take effect in 2018. Currently, the tax reform bills approved in the Senate and House both propose a 20 percent rate, but with the Senate’s amendment not starting until 2019. Further, the top income tax rate on the individual side would fall to 37 percent from its current 39.6 percent rate, according to several reports.
Additionally, the income deduction rate for passthrough businesses would reportedly be set at 20 percent. White House
The final version of the committee conference report is reportedly still being drafted and is expected to be filed by Friday, December 15. A Senate and House vote on a unified tax reform bill are expected next week and could begin as soon as December 18 in the Senate. Republicans remain optimistic of having tax reform legislation enacted before Christmas.
We will continue to monitor the progress of this bill and keep all our clients informed of the provisions and the direct impact on your specific situations. Please do not hesitate to contact us if you have any questions or need any additional information regarding this bill.