The Senate issued its version of the tax proposal on Thursday, the same day that the House Ways and Means committee approved their version.
How Are They Similar?
The Senate and House proposals share many similarities. Both plans reduce the corporate income tax rate, eliminate most itemized deductions, eliminate personal exemptions and increase the child tax credit, repeal the alternative minimum tax, and provide full expensing of certain capital expenditures.
How Do the Plans Differ?
There are certain key items that differ between the proposals that will require further deliberations. Key differences are that the House plan allows itemized deductions for state and local taxes up to $10,000 while the Senate’s plan completely eliminates this deduction. The Senate’s plan has seven individual tax brackets from 10%-38.5% but the House consolidates these into just four. The House plan doubles the estate tax and eliminates it by 2023 while the Senate’s plan also doubles the estate tax but does not phase it out.
The Senate Finance Committee is scheduled to start considering the Senate’s tax plan on Monday. The House is scheduled to vote on its tax bill next week as well.
Gibney is continuing to monitor these developments. For questions about the tax proposals or planning for 2018, please contact: