Tax Legislation: Update

Rackers & Fernandez LLC is monitoring progress on a daily basis and will keep our clients updated. The following are the latest developments as of yesterday.

The Senate tax-writing committee will begin addressing details of its tax cut proposal (Monday, November 13, 2017).

The House is expected to vote on its bill sometime this week.

Points of disagreement between the House and Senate plans include the following;

  1. Deduction for State and local taxes for individuals who itemize deductions.
  2. The top individual tax rate.
  3. The Estate tax.
  4. Effective date of Corporate tax rate reductions.

The Joint Committee on Taxation released a study Saturday night stating the Senate bill would reduce taxes for those earning over a million dollars and over per year a tax cut of $ 58,000.00 in 2019 and a tax cut of $ 688.00 per year for those earning between $50,000.00 and $75,000.00 per year.

For the vast majority of taxpayers between these income levels, the effect varies greatly.