So, what does the Senate version of this bill (HR-1) do? By and large, the Senate bill matches HR-1. But, there are some significant differences. It’s not clear which house will prevail in their interpretation of the various changes (or that the Senate version passes at all). But, again, tax planning is critical- we need to know what may happen. We need to discern what changes this Senate version- if it passes- will have in conference, when the House and Senate work out the differences in their versions.
Let’s reiterate what I said yesterday– I don’t expect this bill to pass. Certainly not the way it was presented in the bill. These posts were written on 2 November- when the bill was published. Since then, the House has proposed changes to its own bill. And, 1 week later, the Senate published a slightly different version- which means that I will be adding to this series to contrast the differences between the two bills. (This series that was 5 blogs will now be 7.)
Do you know that the IRS has not changed its policies on gifts? That any business gift that costs more than $ 25 is taxable to the extent if exceeds that threshold? That is has been in place since 1981- which means at the very least the IRS should have changed the deductible limit to $ 66.
Don’t you just love it that when the Democratic Party is in power, all the GOP can discuss is the increasing debt. And, once the GOP takes power, they forget all about the debt and suggest a tax reduction for the rich that will add trillions of dollars to our debt and render the budget inflows to be a small percentage of the budget outflows.