Daily Tax Update - November 15, 2017: Hatch Releases Modified Mark of Tax Reform Proposal

Hatch Releases Modified Mark of Tax Reform Proposal:  Yesterday, Chairman Hatch (R-Utah) released a modified mark of the Senate tax reform proposal. The modified mark makes significant changes to the original proposal, including providing for the sunset of many of the tax cuts for individuals starting in 2026 and modifying the application of the pass-through and international rules.

The revised proposal would eliminate the Affordable Care Act’s individual mandate. “By scrapping this unpopular tax from an unworkable law, we not only ease the financial burdens already associated with the mandate, but also generate additional revenue to provide more tax relief to these individuals,” Hatch said in a statement.

A score of the modified mark provided by the Joint Committee on Taxation indicates that the modified proposal complies with budget requirements to pass via reconciliation. However, an analysis by the Congressional Budget Office suggests that, if the proposal were enacted in fiscal year 2018, without enacting any further legislation to offset the deficit increase, the Pay-As-You-Go Act of 2010 (PAYGO) would require the Office of Management and Budget to issue a sequestration order.

For Steptoe’s in-depth analysis, click here.

House Vote Expected Tomorrow:  Yesterday the House Rules Committee approved a closed rule that prohibits amendments on the floor to speed up a final vote on H.R. 1. Floor debate is ongoing. The House Ways and Means Committee released a report to accompany H.R. 1 and the White House released a Statement of Administration Policy in support of the bill.