Tax reform was a central component of President-elect Donald Trump’s campaign. In many respects his goals for tax reform closely aligned with those described in the House Republicans Tax Reform Task Force report issued last summer (the House Plan).
Trump and his newly designated Treasury Secretary, Steven Mnuchin, have indicated that there will be ongoing negotiations and refinements of the plan. Although we cannot predict which parts of either plan will be enacted, the continued Republican control of the House and Senate make it likely that some combination of both plans will become part of our tax law as early as next year. Because the Republicans lack the 60 Senate votes required to pass permanent tax legislation that is not revenue neutral, it is possible that any changes that are enacted will be temporary.
