“The boldest ideas for changing the nation’s tax code are either dead or on political life support, as the Republican effort in Congress to reshape the tax system moves much more slowly than lawmakers and their allies in business had hoped. …. The clear winner, so far, is the status quo.”
Richard Rubin, “GOP Bid To Rewrite Tax Code Falters,” Wall Street Journal, May 30, 2017
The Takeaway: Last fall, many people were excited about the prospect for tax reform and lower personal tax rates. More than six months later, where do we stand?
Doubters say President Trump doesn’t have the support he needs for comprehensive reform:
“Big, complicated projects demand disciplined leadership, starting at the top. President Trump has the benefit of an all-GOP Congress, but he hasn’t forged consensus within his party on the path forward,” writes Tory Newmyer for The Washington Post.
On the flip side, several Washington insiders like Andrew H. Friedman, principal of The Washington Update LLC, say meaningful tax reform can still make it through the legislative gauntlet:
“For the first time in thirty years, enactment of comprehensive tax reform legislation is a realistic possibility. President Trump has made tax reform a central goal of his new administration, designating simplification and lower tax rates as key drivers of economic growth.”
Halfway into the year, the tax landscape continues to evolve, and tax reform remains uncertain. If, like many clients, you’ve been “waiting” for lower taxes to make investment or estate planning changes, the clock is ticking.