The so-called “Big Six” group of Republican leaders Sept. 27 released its proposed tax reform plan to overhaul and rewrite the tax code. The nine-page document proposes to cut the corporate tax rate from 35 to 20 percent, collapse the number of tax brackets from seven to three, and expand the standard deduction, among other items.
While not a comprehensive piece of legislation, the blueprint presents several overarching themes or goals of tax reform. The document, produced by Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Majority Leader Mitch McConnell (R-Ky.), Senate Finance Committee Chair Orrin Hatch (R-Utah), House Speaker Paul Ryan (R-Wis.), and Ways and Means Committee Chair Kevin Brady (R-Texas), or the “Big Six,” will now likely take priority among Republican lawmakers as they move away from their efforts to repeal and replace the Affordable Care Act (ACA).
Of interest to the hospital community, the document proposes to retain charitable deductions. Many details of the plan, including how it will be paid for, are not included in the document itself. If Republicans plan to use the fast-track reconciliation process to pass tax reform, they must now work to pass a FY18 budget with such instructions. The Senate Sept. 29 released its budget blueprint for FY18 that appears to include these instructions.