The United States has moved a step closer to enacting significant tax legislation.
The U.S. Senate and the U.S. House of Representatives have now each approved their own distinct tax bills that propose, among other things, to reduce corporate and individual tax rates and to make substantial changes to cross-border taxation. Canadian companies that do business in the United States and U.S. individuals living in Canada should follow the developments of these proposed changes which, if enacted, will be the most comprehensive overhaul of the U.S. tax rules since 1986.
Some of the Senate bill proposals are similar to the ones in the House bill, but there are also some differences. As a result, the House and Senate are now working together via a formal House-Senate conference committee to produce a final tax bill that the House and Senate will separately vote on before it is presented to President Trump to sign into law. Some proposals common to both bills include changes to:
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