Last week in a tight 216-212 vote, the U.S. House passed the Senate’s budget – a move that gets them one step closer to achieving sweeping and long overdue federal tax reforms. With this action, U.S. House Republicans unlocked procedural powers that allow the Senate to pass a tax bill with just 51 votes and sidestep Democratic attempts to stymie the bill’s progress.
While opponents of the legislation have raised concerns about potential changes to 401(k)’s in the tax plan (President Trump has promised there will be none) and state and local tax deductions contained within the legislation, the text of the bill has yet to be unveiled, with plans to introduce it on Nov. 1.
Though passage of tax reform legislation remains several actions away, the House’s approval of the Senate budget was a critical step in the process. Last month, the PA Chamber signed on to a U.S. Chamber-led, national coalition letter urging Congress to take the necessary steps so that the nation’s tax laws can be amended for the first time in 31 years and attract new investment into the country. PA Chamber President Gene Barr has also authored recent opinion editorials making the case for tax reform to be enacted by the end of this year. Further details on the U.S. Chamber’s nationwide push for federal tax reform can be found at TaxReformforAmerica.com.