The president today signed into law H.R. 1 (originally known as the “Tax Cuts and Jobs Act”). The new law represents the culmination of a lengthy pursuit of business tax reform over the course of more than 20 years.
The legislation includes substantial changes to the taxation of individuals, corporate and unincorporated businesses in all industries (including multi-national enterprises), and other taxpayers. Overall, it provides a net tax reduction of approximately $1.456 trillion over the 10-year “budget window” (according to estimates provided by the Joint Committee on Taxation that do not take into account macroeconomic/dynamic effects).
Read text of H.R. 1 [PDF 491 KB]
Most of the provisions of the new law, including the rate reductions, generally are effective in 2018 (i.e., in a little over a week).
Several provisions, however, are effective on the date of enactment. These include, for example, provisions relating to:
For such a substantial revision of the tax code, this legislation has moved very quickly through Congress, with little time for public analysis and comment. It is to be expected that the text will leave many important questions unanswered, to be addressed in future corrective legislation.
KPMG will be releasing a report with analysis and observations on the new law soon.
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