House Ways and Means Chairman Brady releases tax reform bill

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Overview

House Ways and Means Committee Chairman Kevin Brady (R-TX) on November 2, 2017 released a 429-page “Tax Cuts and Jobs Act of 2017” (HR 1). The bill proposes to lower business and individual tax rates, modernize US international tax rules, and simplify the tax law, with significant impacts on numerous sectors of the economy.

The Ways and Means Committee on November 6 is scheduled to begin consideration of the bill. Chairman Brady has announced that he may propose modifications to his bill in advance of the committee ‘markup’ sessions, at which additional amendments offered by committee members could be considered.

Below is a brief summary of select business and individual tax reform proposals in Chairman Brady’s bill (the “Brady bill”), along with links to the statutory language, a section-by-section summary by the Ways and Means Committee staff, and revenue estimates provided by the Joint Committee on Tax staff.

Observation: The legislation is proposed to be generally effective for tax years beginning after 2017. Certain provisions have separate effective dates, with some effective after November 2, 2017. The bill also proposes some temporary measures and provides transition rules for certain proposals.

We will be providing additional analysis of the Brady bill in coming PwC Insights, along with a series of Insights on House committee and floor action and Senate consideration of tax reform legislation.

loading-player

Playback of this video is not currently available

The takeaway

More than 30 years after enactment of the Tax Reform Act of 1986, President Trump and Congress have an opportunity to provide more competitive US business tax rates, modernized international tax rules, and significant simplification for both business and individual taxpayers. Tax reform legislation has the potential to affect significantly business and individual economic decision making, including how and where to invest resources both within the United States and globally.

The release of tax reform legislation by Ways and Means Committee Chairman Brady marks a critical step in the legislative effort to overhaul the US tax system. Significant political hurdles must be overcome before Congress succeeds in enacting sustainable reform of US tax law providing a more competitive tax system for business taxpayers and improved economic opportunities for individuals and families. Stakeholders considering the effects of individual proposals will need to look at the overall benefits of reforms intended to boost US competitiveness and productivity through lower business tax rates, a modernized international tax system, and incentives to invest in the United States.

Contact us

Pam Olson

US Deputy Tax Leader and Washington National Tax Services Leader, PwC US

Tel: +1 (202) 414 1401

Rohit Kumar

US Tax Policy Services Leader, PwC US

Tel: +1 (202) 414 1421

Follow us