In the coming months, I am sure we will hear plenty about tax reform as political campaigns kick into 5th gear. Each side of the aisle will present their own comprehensive tax reform bill. House Ways and Means Committee Chairman Dave Camp will present the Republicans’ tax reform bill and Senate Finance Committee Chairman Max Baucus will present the Democrats’ tax reform bill. Both tax reform bills will be submitted to the Joint Committee on Taxation. This committee will “score” both bills. This “score” will tell us whether each bill will benefit or cost American taxpayers money (i.e. decrease or raise taxes). I expect Max Baucus and the Democrats to tout their bill as revenue neutral and Dave Camp and the Republicans to say their bill will cut taxes.
While you are considering who’s bill you like better, please be sure to wait for the Joint Committee on Taxation’s “score” to make your final decision. This decision will affect almost every single American taxpayer and will last for decades. The last tax reform bill that was passed occurred in 1986! What bill you support this go around could last another 30 years which could make this political & economical decision the most important in your lifetime.
Jamie Kjellander, CPA