Comparing the House and Senate Tax Proposals for You and Your Business

Published on November 21, 2017

On November 2, House Ways and Means Committee Chairman Kevin Brady introduced the Tax Cuts and Jobs Act, which proposes significant tax changes for businesses and individuals. The 429-page bill is generally consistent with the tax reform framework that Republican leaders previously released

On November 9, the Senate Finance Committee released a summary of its tax reform plan (but not proposed statutory language). The proposals, if enacted, would generally be effective January 1, 2018. 

The following table offers a first look at some of the significant aspects of the two proposals.

 

Keep in mind the House and Senate bills will experience several modifications before being signed into law and each proposal must pass the required constitutional steps. 

The House bill will be taken up by the House Rules Committee and then considered by all members of the House.

  • The Senate Finance Committee will continue to modify its plan which, in turn, will be subject to amendment by the full Senate.

  • The House and Senate will most likely pass different tax reform bills, in which case an appointed conference committee will resolve differences between the two bills.

  • The final bill must be passed by both the House and Senate before being submitted to President Trump for approval.

(Source: CliftonLarsonAllen - Perspectives - November 13, 2017)