Managing Partner, Mike Gracik, shared a think piece featured in Virginia Business on the House GOP’s tax reform proposal and the many opportunities and challenges that will present itself to the business community as these changes reach the finalizing stage.
After months of anticipation, the Republican-led U.S. House of Representatives Ways and Means Committee finally released its tax-reform proposal last week. President Trump, House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell and Committee Chairman Kevin Brady have been promising the most comprehensive tax reform legislation since the Tax Reform Act of 1986. They did not disappoint.
There is much that members of the business community should love about proposal but also a host of things that they are not going to like. One of the biggest shocks to many pundits was that top earners making over $1 million individually (or $1.2 million jointly) would stay at an effective tax rate of 39.6 percent. This was a last-minute change Republicans made to win over additional support from Democrats on the committee. Whereas we are still a long way from the finish line, this last-minute change before the proposal’s release might suggest that there are other provisions which the Republicans will concede to secure a legislative win before the end of the year.
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