Tax leaders from KPMG LLP, the audit, tax and advisory firm, offered the following perspectives in response to today's announcement on tax reform.
“Today’s House GOP tax bill is the opening bid on tax reform, not the final one,” said John Gimigliano, Principal-in-Charge of Federal Tax Legislative Services at KPMG. “Now taxpayers, advisors, and lobbyists will all move into high gear to evaluate and support or oppose the proposal.”
Gimigliano also noted: “Recent history suggests that the first version of legislation is always the most ambitious version. And that ambition is diminished as the bill makes its way through each stage of the legislative process. So the next question is how much of today’s proposal can stick.”
Gimigliano added: “The Chairman’s mark will likely be modified in Committee markup and the Senate will produce its own bill subject to more changes. A House and Senate product must get reconciled in conference. It’s possible that any final conference report won’t bear a strong resemblance to either the House or Senate bill.”
Jeffrey C. LeSage, Vice Chairman-Tax, KPMG Americas, said: “Odds for passage of a tax bill have never been higher, but that’s not the same thing as saying tax reform is a certainty, even with this first effort now in hand. Whether the final result—after all the negotiations that lie ahead—is true, permanent tax reform or some of other form of tax relief remains to be seen.”
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the independent U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s independent member firms have 189,000 professionals, including more than 9,000 partners, in 152 countries.