December 22, 2017
Mary Duffy, C. Ellen MacNeil
President Trump Signs Landmark Tax Legislation
On December 22, 2017, President Donald Trump signed the Republican tax bill to officially enact the legislation into law. This is the first major rewrite of the U.S. tax code in a generation and the first significant legislative achievement for President Trump and the Republican Party. After the bill was approved by the House and Senate, White House officials indicated that the President might wait until January 2018 to sign the final bill. Postponement was considered in order to stave off automatic cuts to Medicare and other programs that will be triggered by the pay-as-you-go rule. Since the delay did not occur, the legislation is now officially enacted as of December 22, 2017. The President’s signature in 2017 is perhaps most significant for business taxpayers who must account for the legislative change in their financial statements in the period of enactment, 2017, with no grace period provided.
The final legislation contains sweeping changes for both individuals and business taxpayers. Please see our recent Tax Release for an overview of the legislation. For a more detailed analysis of key provisions, see Conference Agreement Tax Reform Proposals – Highlights of Key Items.
There are some important steps that you may take before year end to position yourself ahead of the effective date of the new law. Please contact us for assistance so that we may help you arrange your business and financial affairs accordingly. We will be providing more details in the coming weeks regarding the implications of this legislative change.