House and Senate Conference Committee Releases Agreed Tax Reform Bill
On December 15, 2017, the conference committee of the House of Representatives and the Senate released an agreed version of the Tax Cuts and Jobs Act (the “Bill”). The Bill is scheduled to be put to a vote this week and then is expected to be submitted to President Trump for his signature shortly thereafter. The Bill will enact significant changes to the existing tax code, including a permanent reduction in the corporate income tax rate, a limitation on the deduction of business interest expense, a temporary deduction for individuals receiving certain business income from “pass-through” entities, and a materially reduced deduction for state and local taxes for individual taxpayers. The Bill also fundamentally alters the taxation of U.S. multinational corporations by shifting to a partially territorial system. A preliminary report by the Joint Committee on Taxation indicated the Bill is expected to cost more than $1.4 trillion over the next 10 years.