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.
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
Read a press release about the package issued today by Chairman Brady.
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.
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.
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.
© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.