This is a continuation of our discussion of the final versions of the House and Senate Tax Cuts and Jobs Act (sic) bill. Those are now the law of the land, PL 115-97.
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.)
For some 7 years now, all we’ve been hearing from the GOP is that Obamacare (aka PPACA- the Patient Protection and Affordable Care Act, aka ACA) is horrendous, it’s failing, and it must be repealed. But, we’ve seen what the House GOP produced- and now the Senate GOP has just proved that they can produce something worse that Obamacare. MUCH, MUCH, Worse.
I’ve been advocating a change in the business income tax for a long time. And (of course), I consider my proposal to be extremely brilliant. Far better than the 1 page change in all taxes proposed by TheDonald or the (sometimes proposed, sometimes withdrawn) special duty tax to be imposed on imports. Because my method collects revenue (as opposed to draining it- hoping for an insane 3% growth- AND the need for a magic potion to harvest funds that never appear) and is equitable.