Is Tax Reform Coming?

Tax reform is a real possibility in 2017 now that the Republicans control the U.S. Senate, the U.S. House of Representatives and the White House. While it is too early to know for sure what tax reform will look like, it is expected that any tax reform will be a mix of the proposals set forth by the House Republicans in their “A Better Way” proposal (the “House Plan”) and the proposals set forth by President Donald Trump on his website (the “Trump Plan”).

It is not certain what process the Republicans will use to pass tax reform. Tax reform can be accomplished through regular order or budget reconciliation.  To avoid a possible filibuster, the Republicans could pass tax reform using the budget reconciliation process.  If tax reform is accomplished through reconciliation, then the tax reform will not have the support of the Democrats.

The attached table compares some of the key points in the House Plan, the Trump Plan and the current tax law.

2017 Tax Reform Table

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