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Senate releases tax reform proposal

November 10, 2017 / 5 min read

Senate Republicans have released a tax reform proposal that includes some key differences from the plan currently under consideration in the House. Here’s what you need to know.

Senate Republicans have released a tax reform proposal that includes some key differences from the plan currently under consideration in the House. Keep in mind that all provisions are subject to change and new provisions could still be added as the Senate Finance Committee begins to mark up its bill, and the House bill moves to the floor for debate next week. Here are our key takeaways.  

Key differences for individuals

The Senate plan:

The Senate plan includes seven income brackets for individuals ranging from 10 to 38.5 percent, as opposed to four income brackets ranging from 12 to 39 percent as proposed by the House.

Key similarities for individuals

The Senate and House plans both:

Key differences for businesses

The Senate plan:

The Senate plan creates a flat 20 percent rate for corporate taxpayers — but it’s not effective until 2019.

Key similarities for businesses

The Senate and House plans both:

Key differences for international activity

The Senate plan:

In conclusion

These proposals are a long way from being enacted into law, and the House and Senate face a difficult path in reconciling the many differences between their plans. Stay tuned for additional updates as the Senate and House bills progress and, as always, feel free to reach out to us with questions. 

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