2023 Tax Calendar
VIEWpoint Issue 2 | 2022
Inflation Reduction Act: Highlights of Key Changes for You and Yo...
Lawmakers continue to debate comprehensive tax reform, aiming for a package to clear Congress and signed into law by the President before summer. At the same time a “mini” tax reform package in an Affordable Care Act (ACA) repeal and replacement plan appears to have stalled in Congress.
Tax reform for individuals and businesses is being driven by two proposals:
In many areas, the two find common ground, including consolidating and reducing income tax rates for individuals, cutting corporate tax rates, eliminating federal estate taxes and abolishing the alternative minimum tax (AMT). President Trump has also called for new tax incentives for child and elder care.
The chief tax writer in the House, Rep. Kevin Brady, R-Texas, has predicted that a comprehensive tax reform package will pass the House before summer. The top tax writer in the Senate, Orrin Hatch, R-Utah, has indicated that the Senate Finance Committee, which he chairs, is likely to develop its own tax proposals. Senate Majority Leader Mitch McConnell, R-Ky., has said that the pace of tax reform in the Senate will depend on the make-up of the House’s tax package.
Closely related to tax reform is infrastructure spending. In January, President Trump called on Congress to support a $1 trillion spending initiative for highways, bridges and other developments. White House officials indicated that tax credits of some type would be part of the proposal. In March, a senior GOP lawmaker indicated that infrastructure spending could be part of a federal aviation bill this year. Infrastructure spending is an area where there may be bipartisan support.
At the eleventh hour, House republicans pulled their ACA repeal and replacement plan (the American Health Care Act (ACHA)) from the House floor. The ACHA would have repealed the ACA’s tax measures including the:
The excise tax on high-dollar health insurance plans (also known as the “Cadillac plan” tax) would have been delayed. The medical expense deduction would have been returned to its pre-ACA parameters. In place of the premium assistance tax credit, the ACHA would have provided a new tax credit generally based on an individual’s age.
For now, ACA repeal and replacement appears to have been moved to the back burner in the House. The statute remains in place. However, there could be some changes to regulations under the ACA.
For more information related to tax reform, health care reform or any federal legislative developments that may impact your business, contact our tax advisors today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).