I generally do not post on a weekend but I thought I’d finally state my thoughts regarding the latest news that the Senate Finance committee finished their tax reform bill and the full Senate voted on it Friday evening.
Here’s the thing everyone who is going off the deep end must remember: the two bills HAVE NOT become law. They have made it through their respective house now it goes to yet another committee to merge the two bills.
The House had tax proposals of approximately 515 pages the Senate had 450 pages. That’s a lot of minutiae to wade through. Trust me in tax bills there is so much pork for specific industries or a specific company ( one year no name was used but rather geographic location) that a Rabbi would go running for the hills.
Yes, there is a lot of items not 100% of America will be happy in losing. My suggestion is to do what I did and run numbers using actual data, your 2016 tax return, and see if anything changes. I did this using several clients data over several tax brackets. Some did better, some worse, some no change. Not huge changes. Low income individuals receive FREE money in the way of Earned Income Credit that reduces their tax liability and to often puts money into their pockets. These folks saw no changes.
So until the committee release what they are keeping and tossing breathe and worry about things you can control. We at Century read tax law to help our clients 365 so we’ll do the work that best benefits our clients-legally.