Senate Passes Tax Cuts Act; Alignment With House Version Lies Ahead

The U.S. Senate late Friday approved its version of the Tax Cuts and Jobs Act by a 51-49 vote. The act contains legislation that would make sweeping changes to business and individual federal tax provisions.

Included are major changes to corporate tax rates and taxation of business pass-through income, as well as individual income taxation. Some changes to tax-preferred savings arrangements are included in the Senate bill, with some potential effect on IRAs, HSAs, employer-sponsored retirement plans, 529 state-sponsored college savings plans, and ABLE accounts for special-needs individuals.

The next step for tax reform legislation is a conference committee process by which the Senate and House-passed versions, which differ in a number of respects, must be aligned. Only when the Senate and House have approved tax reform legislation in identical form can it be signed into law by President Trump.

Watch this News for more details as they become available.