On November 2, 2017, Chairman Kevin Brady (R-TX), of the Ways and Means Committee of the House of Representatives, released the first draft of a tax reform bill (the “Chairman’s Mark”) providing further detail with respect to the broader framework released by the Administration on September 27, 2017. The draft of the bill (H. R. 1, the “Tax Cuts and Jobs Act”) diverges from the proposals in the framework in several key respects. Most of the proposed changes would become effective for years after 2017.
The proposed tax legislation is being considered under fast track or budget reconciliation rules. These rules allow the legislation to avoid filibuster in the Senate, but also subject the legislation to strict budget constraints. Legislation is not eligible for the fast track process if it adds to the deficit beyond the ten-year budget window. Thus, the Senate may need to find additional offsets and/or sunset some of the tax relief.
Click here for a summary of the Chairman’s Mark following the summary of the proposed legislation prepared by the Ways and Means Committee Majority Tax Staff. In some cases, considerations included in the discussion in the Majority Tax Staff summary are noted for clarification.