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The ones to watch: A quick take on new House tax bill provisions

November 7, 2017 / 4 min read

The proposed Tax Cuts and Jobs Act includes both tax cuts and revenue raisers. Here's our initial take on some key provisions as they relate to individuals and domestic and multinational businesses.

UPDATE: The House made several amendments to this bill subsequent to this article being published. See this link for a discussion of the more significant amendments.

The House of Representatives Ways & Means Committee released the draft text of its tax plan, and it contains important proposed changes to the U.S. tax code. Those changes largely follow the Unified Framework that was issued in late September. The proposed bill includes a mixture of tax cuts and revenue raisers. While we continue to unpack the details and the potential impacts, here's our initial take on some key provisions as they relate to both businesses and individuals.

Individual

For individual taxpayers, the proposed plan would: 

Many taxpayers won't be sad to see the AMT go, but repealing it would reduce U.S. Treasury revenue by over $400 billion, according to one estimate.

Domestic business taxation

For business entities, the proposed plan would: 

The estate tax would be eliminated entirely by 2024, but the beneficiary’s stepped-up tax basis in estate property would still be maintained.

International provisions

With respect to international taxation, the proposal would:

Not surprisingly, reactions to the bill have been mixed. From here, the bill will go to markup next week and faces an uncertain future. Stay tuned for additional updates as the bill progresses.

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