Major overhaul of the US tax code
TAX ALERT |
The long-awaited legislation regarding the U.S. tax reform was passed by both the House and the Senate on December 19, 2017. As expected, the Senate voted strictly along party lines at 51-48 (Sen. McCain did not vote due to medical reasons) and the House passed the bill 227-203 with 12 Republicans joining the Democrats in opposition. No Democrat supported the bill in the House or the Senate.
Formerly known as The Tax Cuts and Jobs Act, due to a procedural technicality, the Senate parliamentarian ruled that the name of the bill was in violation of the Byrd rule and would thereafter be called “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” (Tax Reform Bill).
Also due to the Byrd rule, the House re-voted on the Tax Reform Bill on December 20, 2017 and as expected, the Tax Reform Bill was passed again. President Trump celebrated the Tax Reform Bill’s passage and will be signing it into law once the bill has been formally enrolled. Much of the provisions in the Tax Reform Bill will be effective as of January 1, 2018.
The Tax Reform Bill represents the largest overhaul of the U.S. tax code since the Tax Reform Act of 1986 was signed into law by President Reagan. It profoundly affects the way that corporations and individuals are taxed in the United States. Please visit the RSM Tax Resource Center to see details regarding the provisions of the new U.S. tax law.
RSM US will be hosting a webcast regarding the Tax Reform Bill on February 2. For more information and registration, click here.
Contact your RSM Canada representative to learn more about how US tax reform will affect you and your cross-border business.