“The Senate Tax Reform Bill: Benefits for Some and Burdens for Others”
In the early hours of Saturday morning, December 2, 2017, the U.S. Senate passed its version of the comprehensive tax reform bill (the “Senate bill”). The Senate bill differs significantly from the previous Senate proposal introduced by the Senate Finance Committee, and from the version that the House of Representatives passed on November 16, 2017. As a general matter, the Senate bill takes the approach of making permanent changes to the corporate tax rate, but almost all of the individual tax changes in the Senate bill will sunset after 2025. The House bill, on the other hand, takes the approach of making most changes permanent, but at the expense of more drastic (and more controversial) changes in the area of individual taxation.
Given the significant differences between the House and the Senate versions of the bill, the conference committee is expected to begin its work on resolving these differences. Once the conference committee has reached an agreement, both the House and Senate will vote to pass the same version of the final bill, which will then be submitted for the President’s signature.
This Stroock Special Bulletin discusses certain significant provisions in the Senate bill, and how they compare with corresponding provisions in the version previously passed by the House.