On Saturday, Dec. 2, the Senate version of the Tax Cuts and Jobs Act was passed by a 51 to 49 vote. The vote, taking place at 2 am, was another major step down the road of tax reform. The Senate plan, which moved from the Senate Finance Committee to the Senate Floor on the same day that the House of Representatives voted in favor of their version of the bill, proposes to make significant changes to the tax code. However, because the two versions of the bill differ they will need to be reconciled through a “conference” committee before being signed by the President.
Individual Income Tax Changes
Looking first to individual income tax, there are several key differences between the Senate and House plans. Where the House plan proposes to reduce the number of taxable brackets from seven to four, the Senate plan maintains seven brackets but reduces the taxable […]