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.
Legal disclaimer: The information in this article (i) is provided for general informational purposes only, (ii) is not provided in the course of and does not create or constitute an attorney-client relationship, (iii) is not intended as a solicitation, (iv) is not intended to convey or constitute legal advice, and (v) is not a substitute for obtaining legal advice from a qualified attorney. You should not act upon any of the information in this article without first seeking qualified professional counsel on your specific matter.