Comparison of U.S. House and U.S. Senate Proposed Tax Plan Comparison of U.S. House and U.S. Senate Proposed Tax Plan

Comparison of U.S. House and U.S. Senate Proposed Tax Plan

On Nov. 2, 2017, the U.S. House of Representatives Ways and Means Committee released its tax plan entitled “Tax Cuts and Jobs Act” (H.R. 1) (the “Tax Bill”). Beginning Nov. 6, 2017, the Ways and Means Committee commenced full committee hearings on the Tax Bill for purposes of its markup, which was released on Nov. 9, 2017. It is anticipated that the full House will vote on the Tax Bill this week.
  
Late on Nov. 9, 2017, the Senate Republicans outlined a proposed tax plan, titled “Description of the Chairman’s Mark of the ‘Tax Cuts and Jobs Act’” (“Description of Chairman's Mark”). The Description of Chairman’s Mark was prepared by the staff of the Joint Committee on Taxation. The Senate Committee on Finance held a markup hearing on the Description of Chairman’s Mark on Nov. 13, 2017.
   
There are several provisions in the Tax Bill and the Description of Chairman’s Mark, which impact governmental retirement plans. We have prepared a comparison of the key sections of the respective proposals, which may be of interest to governmental retirement plans. In addition to the direct impact of the proposals, the Tax Bill may also have collateral consequences, such as impacting what amounts may be includible in a plan’s definition of compensation. Click for our summary of impact on governmental plans.
  
It is too early to plan for any final changes or impacts of the Tax Bill. With respect to next steps, the Tax Bill still has to be approved by both houses of Congress, and then any differences between the versions passed by each house must be reconciled. It is far from certain at this point what the final provisions of the Tax Bill will be, particularly given the amount of attention the Tax Bill is receiving from lawmakers, as well as interested stakeholders. Notwithstanding, Congressional leaders and the White House have stated they want to finalize the Tax Bill before the end of 2017. We will keep you updated as the Tax Bill progresses and developments specifically related to governmental retirement plans become more solidified.
   
If you have any questions or comments regarding the Tax Bill, please do not hesitate to contact a member of our Employee Benefits Team.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.
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