Everyone is talking about tax reform as it is making the rounds through the House and the Senate. The House passed their version. The Senate has released their version and it is in the amendment process now. If the Senate passes their bill, then the House and Senate will reconcile the two bills together and then they will each have to pass the reconciled bill. And finally, Donald Trump would need to sign the bill into law. Experts around the country are giving tax reform anywhere from 0% to 65% chance to actually get passed.
Even 65% is not that great of a chance for tax reform to become a reality. The good news is most of the changes in the legislation are for 2018 going forward. Until we know what if anything is actually changed in the tax code, there is not much planning we can do.
Despite all the rhetoric in Washington, I do believe the lower tax rates on C-Corporations and individuals will overall lower our tax burden. However, I am not sure I agree that they are doing anything to simplify the tax code.
Hopefully by Christmas we will know if we are going to get any type of tax reform.
Karena J. Sylvester, CPA