After months of debate and discussions, the U.S. House of Representatives Committee on Ways and Means finally released their proposed bill entitled the Tax Cuts and Jobs Act. This bill will now go to the full House of Representatives for review and negotiation. As you can see, we have a long way to go before any tax legislation is finalized. Interestingly though, this proposal does give us an idea of the potential tax law changes coming. Click here to view a summary of the tax bill prepared by the U.S. House of Representatives Committee on Ways and Means.
Some of the highlights include lower individual and corporate tax rates; a lower tax rate for some pass-through entity business income and a repeal of the Alternative Minimum Tax, while eliminating and modifying some business and individual tax deductions and tax credits, and enhancing some other business deductions. This legislation also calls for the eventual elimination of the Estate Tax.
We are monitoring this bill as it goes through the legislative process and will keep you updated on the new law. If you have questions about how these potential changes will affect you and your business, please contact your Warren Averett advisor.