The tax reform bill is nearing the finish line. The House and Senate conference committee is currently working to reconcile the two versions. Iowa Senator Chuck Grassley is predicting passage of the conference bill next week. The Chair of the tax writing Senate Finance Committee says he’s hoping for the President’s signature on that legislation before Christmas
He says farmers will benefit from lower rates and the 179 expensing of capital investment on everything but buildings. Grassley thinks those provisions are pretty much set. However, various compromises are currently taking place to merge the House and Senate tax bills, including on pass through deductions.
Grassley says the fate of the estate tax is also in the hands of the conference committee, but it also depends on the impact it will have on the deficit.
Grassley is concerned the Senate put the Alternative Minimum Tax in their reform bill for individuals and corporation, while the House version eliminates it. He says AMT is bad tax policy and needs to come out of tax law, but he’s not sure if it will be stripped from the final bill or not.
