Tax insight

Ways and Means Chairman Smith releases initial FY 2025 tax bill text

Insight
5 minute read
May 10, 2025

What happened?

House Ways and Means Committee Chairman Jason Smith (R-MO) on May 9 released an initial 28-pages of statutory tax bill proposals extending certain individual, pass-through business, and international tax provisions enacted as part of the 2017 Tax Cuts and Jobs Act (TCJA) that currently are set to expire at the end of this year. The initial proposals include a de minimis tariff exemption provision and a provision limiting Medicare coverage to US citizens or other individuals with specified legal status. The proposals will be considered by the Ways and Means Committee at a “markup” scheduled to begin on May 13 that could continue for two or more days.

Chairman Smith stated that early next week he will propose additional statutory text for other individual and business tax proposals, including tax proposals offered by President Donald J. Trump, in a revised “chairman’s mark” for consideration by the committee.

Why is it relevant? 

The goal of the Ways and Means Committee “markup” is to report proposed tax law changes that can be considered by the full US House of Representatives during the week of May 19 as part of a “one, big beautiful” Fiscal Year (FY) 2025 reconciliation bill. Assuming House passage, the Senate is expected to act on the legislation in June. Republicans in Congress hope to send a final bill to President Trump for his signature before Congress begins a July 4^th recess.

Action to consider 

Business leaders and individuals will need to evaluate the potential effect of proposed tax law changes to be considered as part of the FY 2025 reconciliation bill on the US economy, business, and individuals.

For more details, read the full Tax Insight linked below.