House Passes H.R. 1 – Tax Reform Bill

The House of Representatives today passed its tax bill (H.R. 1) by a 227-203 vote. The bill sets a permanent 20 percent corporate tax rate, doubles the estate and generation skipping tax exemption (leading to repeal in 6 years), institutes a new system for calculating taxation of pass-through income, eliminates the AMT and most itemized deductions, and condenses existing tax brackets, among myriad other changes. Passage is an important step toward what Republicans say is critical legislation. Next, the Senate Finance Committee will vote on its version of tax reform, which phases in the lower corporate rate and has various other changes that differ from the House bill and will need to be resolved in reconciliation with the House.