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Ways and Means Chairman Brady releases modified version of tax package

Ways and Means Chairman releases version of tax package

U.S. House Ways and Means Committee Chairman Brady (R-TX) today released a “retooled” version of a tax package that the House proposes to add to H.R. 88 (an unrelated bill) as an amendment.

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The 253-page amendment [PDF 568 KB] includes: 

  • Several technical corrections to the 2017 tax law 
  • Retirement and savings provisions 
  • Health-related tax provisions that would delay the medical excise tax, the “health insurance tax,” and the so-called “Cadillac tax” and that would repeal the “tanning tax”
  • Provisions relevant to tax-exempt entities, including repeal of a tax on transportation fringe benefits with respect to such entities
  • IRS administration provisions
  • Disaster relief provisions
  • Other miscellaneous provisions   

 

Background

Chairman Brady on November 26 released an earlier version of the tax package. Read TaxNewsFlash

Subsequently, a “Manager’s Amendment” [PDF 238 KB] to H.R. 88 was released, that included a proposal to repeal section 512(a)(7)—a provision added by the 2017 law that increases unrelated business taxable income of exempt organizations by amounts paid or incurred to provide certain transportation fringe benefits to nonprofit employees. Read TaxNewsFlash

Read the Joint Committee on Taxation (JCT) table with estimates of the budget effects of the revenue provisions included in prior versions of the package.

KPMG observation

Today’s release includes items not included in the prior version of the tax package:

  • The health-related tax provisions were not in a prior version of the tax package (described above). 
  • Today’s package includes a technical correction that was not in the prior version of the package—this technical correction would modify section 958(b) and would add a new section 951B.
  • Today’s package does not include some provisions that were in the prior version, such as extensions of tax provisions that expired at the end of 2017 and an “innovation” title.

Future prospects

It is not clear whether the House will take up H.R. 88 before the current Congress adjourns later this month or, if it does, what the Senate’s official response (if any) might be. Regardless of whether the House passes H.R. 88 or not, it is possible that some provisions in the bill might be included in other legislation on which the House and Senate might agree (such as a government funding bill) prior to adjournment.  However, it is also possible that this will not be the case, and that no further tax legislation will be enacted by the current Congress.

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