November 22, 2017
There has been a lot of activity on tax reform in the past few weeks. Johnson Price Sprinkle PA, an accounting firm with offices in Asheville, Boone and Marion, NC, identifies components which we believe are the most common and significant provisions.
On November 2, the House of Representatives, where all Federal tax legislation originates, released the Tax Cuts and Jobs Act (H.R. 1). Soon after, the customary markup process started. The House voted and passed the bill on November 17.
Once the House bill was released, the Senate was able to review and begin deliberating on it. On November 9, the Senate released its revisions to the House bill, after which it started its own markup process. The Senate Finance Committee completed markups on November 16, which was followed by a few “manager’s amendments” by Chairman Orrin Hatch (R-UT). The Senate intends to vote on their revised version after Thanksgiving.
If the Senate passes the bill with their amendments, it would then go to the House of Representatives. Traditionally, the House would adopt a motion to disagree with the Senate amendments. A Conference Committee would then be appointed to work through the differences between the two versions of the bill. The Committee’s compromised version would then be voted on. If adopted, the revised bill would be sent to the White House. Needless to say, each of these steps is significant, and there’s still a lot of ground to cover before a bill can make it to the President.
Below JPS has identified the provisions that we believe are most common and significant, and we have then addressed the law as it is currently written, as it is proposed by the House and as proposed by the Senate. The provisions addressed here would be effective in 2018 unless otherwise stated. There are many additional provisions and details that are beyond the scope of this article.
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