Last night, the Trump Administration and Republican leadership in Congress released a tax reform framework that will be used to craft U.S. tax reform legislation. Here is a summary of key provisions:
What the legislation will actually say, and whether and when it will pass, are not clear. It is expected the U.S. Senate will be a major hurdle because 60 votes are needed, but Republicans hold only 52 votes. If U.S. Senate Republicans want to pass the proposed tax legislation with a simple majority, then the tax legislation will need to be “revenue neutral” under the budget reconciliation process, and it is not clear whether that will be the case.