AGREEMENT ON TAX REFORM – IMPACT TO INDIVIDUALS
On Friday, December 15, a joint conference committee comprised of House and Senate members released an agreed-upon version of the Tax Cuts and Jobs Act (the “Act”). The Act provides the most comprehensive update to the tax code since 1986 and includes a number of provisions of particular interest to our private clients.
The Act now goes before the full House and Senate for a vote the week of December 18, 2017, but is widely expected to pass as a result of some last-minute negotiations to secure a projected unanimous GOP vote in the Senate.
Ordinary Income Tax Rates
The conference agreement replaces the existing tax rate structure, choosing the seven-rate structure previously proposed by the Senate.