Download final version of tax bill

The measure has seven individual tax brackets, and like both the House and Senate bills, substantially increases the standard deduction. Several popular tax preferences that were eliminated in the House bill are preserved. The bill does not repeal the estate tax or the alternative minimum tax for individuals, both long-time goals for Republicans, but it does increase the exemption amounts.

The corporate alternative minimum tax, which was retained in the Senate bill, is eliminated, a change that is certain to please the business community. The final bill provides tax relief to pass-through businesses — entities such as small businesses whose income is taxed through the individual code — through a percent deduction.

The measure also moves the U. Republicans are advancing the measure through a process called reconciliation that prevents a filibuster from Democrats in the Senate. The corporate tax changes and individual mandate repeal are permanent.

The House and the Senate are expected to approve the bill next week and send it to Trump, delivering him his first major legislative victory. Republicans have long wanted to rewrite the tax code, arguing that doing so would boost economic growth and lead to more job creation. Most analysts doubt that the economic growth from the bill will offset the revenue losses, but GOP lawmakers and the White House disagree.

They say the changes to the tax code will unleash business investment. The other is H. Neither the House nor the Senate has yet voted on H. The bill [PDF 3. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients.

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. KPMG Personalization. Get the latest KPMG thought leadership directly to your individual personalized dashboard. Register now Login. The bill [PDF 3. The bill reflects the results of negotiations among a bipartisan group of Senators. President Biden also has expressed support for bipartisan infrastructure legislation. Last week, a procedural motion with respect to the bill was approved by the Senate with the support of all 50 Senate Democrats plus 17 Senate Republicans.

The bill is drafted as an amendment in the nature of a substitute to a highway bill that the House previously passed. The Congressional Budget Office is expected to provide a table showing additional budgetary effects including revenue raised by certain non-tax provisions not scored by JCT.

The Senate is expected to consider the bill later this week. Amendments might be adopted during this process. Assuming the bill passes the Senate with at least 60 votes, the House might be expected to address the legislation at some time in the fall.

Speaker Pelosi previously indicated that the House would consider bipartisan infrastructure legislation at the same time as it addresses separate legislation addressing other Democratic policy priorities through the budget reconciliation process. In order for legislation to become law, the House and Senate ultimately need to agree to the same version of the legislation and the president needs to sign it into law.