On November 9, 2017, the Senate Finance Committee released a detailed description of the Senate tax reform bill, entitled the Tax Cuts and Jobs Act. The Senate Finance Committee did not release the language of the proposed legislation.
In addition, the House Committee on Ways and Means voted to approve its tax reform bill, H.R. 1, also entitled the Tax Cuts and Jobs Act (see Nelson Mullins Summary of the House tax reform proposal here).
Differences in the House and Senate proposals, including the tax brackets for individuals, the effective date of corporate tax cuts, how pass-through entities are taxed, and whether to repeal the state and local tax (SALT) deduction, will have to be reconciled. The House proposal eliminates the state income tax deduction, but would allow taxpayers to deduct up to $10,000 in property taxes. The Senate proposal repeals all SALT deductions. This provision will be troublesome for members of Congress representing high income tax states.
Click here for a summary of the House and Senate Tax Proposals based on the information available to date. It is possible that other differences between the House and Senate proposals will emerge. The Ways and Means-passed bill is expected to be considered by the full House as early as this week. The Senate Finance Committee has begun the markup of its legislation and is expected to conclude by Thursday of this week.