Ok, now that I have your attention…I actually mean Tax Reform is coming…
As of Saturday (12/2/17), the Senate passed its version of the tax bill and earlier in November, the House passed theirs. Over the coming weeks, the two sides will work together to compromise on a bill.
I’ve been following the situation closely and wanted to share my favorite articles outlining some of the proposed tax bill changes and potential implications.
My top recommended article is from Heritrage.org. This article has a great comparison chart showing the current law vs. the House and Senate proposed changes. http://www.heritage.org/taxes/commentary/1-chart-the-differences-between-the-house-and-senate-tax-reform-bills-0
As the House and Senate work to reconcile their differences, this article by CNN describes the key differences between the two. http://money.cnn.com/2017/12/03/pf/taxes/senate-house-tax-bills-individuals/index.html
One of the major topics of this tax reform is the limited deduction on state and local taxes at the federal level. For us New Yorkers and New Jersey Residents, there is a good chance our tax liability will go up because of proposed limits. https://www.nytimes.com/2017/12/04/business/economy/tax-bill-new-york.html
The Washington Post dives into the analysis by the Joint Committee on Taxation. This gets very interesting as there are illustrations of the impact on households at different income brackets next year and forward looking over the next 10 years. https://www.washingtonpost.com/news/politics/wp/2017/11/30/how-the-republican-tax-bill-benefits-the-rich-according-to-government-analysis/?utm_term=.3e33c5fdabcd
For those who like to get into the details, see below for the Joint Committee on taxation reports! https://www.jct.gov/
It’s still early in the tax reform process and it will be interesting to see where the final tax bill lands. For now, all we can do is wait and see.