President Trump signed the tax reform bill (HR 1) into law on 22 December. The law will lower business and individual tax rates, modernise US international tax rules, and provide the most significant overhaul of the US tax code in more than 30 years.
HR 1 includes a broad range of tax reform proposals affecting businesses and individuals, including a new 20-percent deduction for certain pass-through business income. In addition, many current-law tax provisions have also been repealed or modified to offset part of the cost of the proposed tax reforms. The Joint Committee on Taxation staff have estimated that the net revenue effect of HR 1 will be to increase the on-budget federal deficit by $1.456 trillion over 10 years.
Thirty one years in the making, tax reform in 2017 has gone from a legislative priority to law. 2018 will see many impacts from the law, and PwC will continue to break down the changes to keep you ahead of the curve.
In the video below, Rohit Kumar, PwC's Tax Policy Services Leader, shares the top three things to watch out for in 2018.