Eversheds Sutherland Tax Reform Law Blog
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Legal Alert: Energy Tax Changes Proposed by House Republicans Tax Reform Bill

View the Eversheds Sutherland Legal Alert discussing the energy tax provisions of H.R. 1 here.
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Legal Alert: The Tax Cuts and Jobs Act, Take One: A Methods-Based Overview of the Initial Draft of the House Tax Bill

View the Eversheds Sutherland Legal Alert discussing accounting method issues in H.R. 1 here.
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Legal Alert: Tax Cut and Run: Employee Benefits Change Under the Tax Cuts and Jobs Act

View the Eversheds Sutherland Legal Alert discussing the employee benefits provisions of H.R. 1 here.
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Senate Bill Anticipated Later This Week; House Begins Markup of Their Tax Reform Legislation

  The House Ways and Means Committee began marking up the GOP tax bill this afternoon, and the process is expected to continue until Thursday. The markup will start with opening statements and then amendments are expected to be introduced throughout the week by Chairman Kevin Brady.  With the floor open to Democrats, discussions and amendments are anticipated to focus on the repeal of deductions for state and local taxes, home mortgage and the adoption credit. Senate Finance Chairman Orrin Hatch says he plans to release a bill for his committee to consider once the House Ways and Means...
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Joint Committee on Taxation Releases Description of the Tax Cuts and Jobs Act

The Joint Committee on Taxation has published the description of the House’s recently released tax legislation, the Tax Cuts and Jobs Act, which contains an explanation of the various bill provisions. The House Committee on Ways and Means has scheduled a markup on November 6, 2017. 2017 Read the full report.  Read the description of the...
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House Ways and Means Committee Releases Amendment in the Form of a Substitute to Tax Reform Bill

The House Ways and Means Committee released an amended version of the Tax Cuts and Jobs Act. Among other changes, the amended bill no longer contains a limitations on treaty benefits provision for deductible related party payments. Read the revised bill here.
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House Releases Tax Bill Titled “Tax Cuts and Jobs Act”

The House Ways and Means Committee released the first draft of their tax reform legislation, titled “Tax Cuts and Jobs Act.”  The Senate is expected to release their draft legislation before Thanksgiving. Read the section-by-section summary and the text of the bill...
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Corporate Tax Reforms Proposed by House’s Tax Bill

The tax bill released by the House Ways and Means Committee offers three major changes to corporate tax legislation. First, businesses will be able to immediately deduct qualified property for five years. The deduction is no longer limited to taxpayers that had “original use” of the property. The bill excludes from the definition of qualified property any property used by a regulated public utility company or any property used in a real property trade or business. Second, the net interest expense deduction for every business, regardless of its form, is limited to 30 percent of the business’s...
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Rates Proposed by House’s Tax Bill

The tax bill released by the House Ways and Means Committee proposes significant changes to both individual and corporate rates. The corporate tax rate will be lowered from 35% to 20% while the rate on “pass-through” businesses will be lowered to 25%. On the individual side, tax rates will be consolidated into four brackets: 12%, 25%, 35% and 39.6%. Read more: Policy Highlights – The Tax Cuts & Jobs Act;  Committee on Ways and Means – Tax Cuts & Jobs Act...
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Delayed Tax Reform Bill Is Expected To Be Released Thursday

Kevin Brady, the Republican chair of the House Ways and Means Committee, stated that the tax reform bill will be released on Thursday. The bill was originally slated to be released today but there are still several unsettled matters related to the plan, such as the in threshold for the top marginal individual tax rate. The Ways and Means Committee remains set to mark up the bill on Monday. Read more:  House Republicans are delaying the rollout of their massive tax reform...
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Set Phasers to Stun: Corporate Tax Cuts May Be Delayed Under Phase-in Plan

An unnamed member of the House Ways and Means Committee stated Monday that the Committee is discussing a phase-in plan for the corporate tax-rate cut. In response, Kevin Brady, Chairman of the House Ways and Means Committee, said only that the Committee preferred an option with no phase-in. Both President Trump and Treasury Secretary Steve Mnuchin also expressed their preference for an immediate tax cut. The proposed phase-in plan would reduce the corporate tax rate to an ultimate rate of 20% by reducing the rate by 3% a year over 5 years beginning in 2018, and would be less costly compared...
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Even with Concession on Property Tax Deductions, Tax Bill Aimed for Wednesday Release Faces Early Opposition

Kevin Brady, Chairman of the House Ways and Means Committee, announced that the House’s tax plan will allow individuals to deduct their state and local property taxes from their federal returns, “to help taxpayers with local tax burdens,” although not their state and local income or sales taxes. However, the National Association of Home Builders has already voiced its opposition to the tax bill after learning that the House would not be moving forward with a proposal to convert homeowner deductions into a credit. To keep groups from mobilizing against the bill and causing further setbacks,...
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House Democrats Release Their Tax Reform Principles

The ranking Democrat on the House Ways and Means Committee, Rep. Richard Neal, released their principles on tax reform on Wednesday, outlining the Democrats’ priorities for tax reform legislation.  The outline calls for increases to tax credits and incentives targeted towards the middle class and expanding infrastructure investment. On the corporate side, the Democrats’ goals involve increasing the domestic manufacturing deduction, enhancing the research and development credit, and eliminating tax provisions that encourage companies to move overseas. With the passage of the budget,...
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House Passes Budget, Clearing the Way for Tax Reform

The House of Representatives approved the Senate version of the 2018 federal budget by a narrow margin (216-212).  The budget will allow for tax legislation that could add up to $1.5 trillion to the federal deficit over 10 years, and will clear the path for Congress to fast-track tax reform legislation.  House Republicans are expected to unveil the text of their tax bill next week. Read more: Budget narrowly passes House, a key step in tax reform...
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State and Local Tax Deduction Presents a Potential Roadblock to Tax Reform

Republican leaders are counting on a swift vote on the budget in order to meet their end-of-year deadline for passing tax reform.  However, House Republicans from high-tax states like New York, California, Illinois, and New Jersey indicated that they might not vote to pass the budget on Thursday unless they receive a guarantee that tax reform will not eliminate the State and Local Tax (SALT) deduction.  Ways and Means Committee Chairman Kevin Brady still believes that there will be enough votes to pass the budget and that the concerns related to the SALT deduction will be addressed before...
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