The House Ways and Means Committee on November 9, 2017 approved by a party-line vote of 24 to 16 the ‘Tax Cuts and Jobs Act of 2017’ (HR 1) bill. 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 bill, as approved by the committee, includes amendments offered by Ways and Means Committee Chairman Kevin Brady (R-TX) on November 3, November 6, and November 9 to revise key provisions of the bill as originally introduced on November 2, as well as to add new proposals. No other amendments were accepted.
The House of Representatives is expected to debate and vote on the legislation during the week of November 13. Additional changes to the Ways and Means Committee-approved bill may be made by the House Rules Committee before the legislation goes to the full House for consideration.
For background and a broad overview of all the proposals in the Brady bill (the ‘bill’) as initially amended on November 3, see our November 5 PwC Insight.
Meanwhile, the Senate Finance Committee late today is expected to released its own tax reform legislation that the tax committee is expected to begin considering on November 13. A forthcoming PwC Insight will provide an outline of the Senate Finance Committee tax reform proposals. We also will be providing additional analysis of tax reform proposals as the legislation advances through the House and Senate.
The tax reform legislation being considered in the House and Senate remains open to significant changes as Congress attempts to overcome political hurdles that could affect the prospects for enacting sustainable reform of US tax laws, providing a more competitive tax system for business taxpayers and improved economic opportunities for individuals and families.
Stakeholders considering the effects of specific business and individual tax reform proposals will want to consider 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.