U.S. Tax Reform

Overview of Ways and Means Chairman Brady’s tax reform bill
November 5, 2017

In brief House Ways and Means Committee Chairman Kevin Brady (R-TX) on November 2, 2017 introduced a 429-page “Tax Cuts and Jobs Act” (HR 1) that would make dramatic changes to the taxation of businesses and individuals. Chairman Brady released a substitute amendment to the bill on November 3, and announced that he intends to offer additional amendments for Ways and Means Committee ‘markup’ sessions scheduled to begin on November 6. Chairman Brady’s November 3 changes include accelerating the use of a ‘chained’ consumer price index (CPI) to adjust for inflation certain tax provisions (such as individual tax brackets) and striking a proposal in the bill that would have limited tax treaty benefits for certain deductible payments. Below is a general summary of select business and individual tax proposals in Chairman Brady’s bill as modified (the ‘bill’), along with links to explanations and updated revenue estimates released by the Ways and Means Committee and Joint Committee on Taxation staffs.

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