Senate Finance Committee Chairman Orrin Hatch (R-UT) on November 9, 2017 released a Senate version of the ‘Tax Cuts and Jobs Act.’ The Senate tax reform proposals would lower business and individual tax rates, modernize US international tax rules, and simplify the tax law, but differ in key aspects from the House Ways and Means Committee-approved tax reform bill (HR 1).
Below is a brief summary of select business and individual tax reform proposals in Chairman Hatch’s bill (the ‘Hatch bill’), with links to the Joint Committee on Taxation (JCT) staff explanation and JCT revenue estimates.
The Finance Committee at 3 PM ET on November 13 is scheduled to begin consideration of the bill, with the markup continuing through the week. Unlike the House Ways and Means Committee, the Senate Finance Committee does not work from statutory text and instead will conduct a ‘conceptual’ markup based on the 247-page JCT staff description of Chairman Hatch’s reform bill. In the Senate’s normal course, legislative text of the bill would be released following the markup. We understand, however, that the Finance Committee is considering releasing legislative text earlier than that.
Meanwhile, the Ways and Means Committee on November 9 completed its tax reform bill, and the full House of Representatives is expected to debate and vote on the legislation during the week of November 13. For more on the Ways and Means Committee bill, see our PwC Insight.
The release of tax reform legislation by Finance Committee Chairman Hatch marks the next significant step in the legislative effort to overhaul the US tax system. There are political hurdles to overcome for Congress to enact 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.