Summary
As a part of TRP Health Policy’s ongoing analysis of tax reform, we have updated our chart to reflect notable provisions in the tax reform bills passed by the respective chambers of Congress, including changes that have been made throughout the legislative process. Now that both chambers have passed their versions of The Tax Cuts and Jobs Act (TCJA), lawmakers will turn their attention to a conference committee to reconcile their proposals.
While GOP leaders are confident they can resolve their differences, there are several contentious provisions that will need to be ironed out in conference, including: (1) repeal of the Affordable Care Act’s individual mandate; (2) the future of the Alternative Minimum Tax (AMT); (3) timing and level of the corporate tax-rate cut; (4) treatment of pass-through businesses and; (5) the number individual tax brackets as well as the rates. Leadership will also have to reconcile differences on hotly contested deductions — namely the state and local tax deduction (SALT), medical expense deduction, orphan drug credit, and research expense deduction.
The House approved its motion to go to conference Monday night, and the formal conference process is set to begin after the upper chamber approved a compound motion to go to conference today. However, it is important to note that GOP leadership has already begun informal talks, fueling speculation that most issues could be worked out before the conference begins. The official conference report could be filed as early as Dec. 12, setting up a final up-or-down vote in both chambers to send the final bill to President Trump’s desk before Christmas break.