By Robert Nihen
Now that the Democrats have taken control of the U.S. House of Representatives, many businesses and other taxpayers are asking what new tax legislation, if any, might come out of the divided 116th Congress.
Few observers expect substantial new tax cuts or significant changes to the sweeping U.S. tax reform bill signed into law in late 2017. But that doesn’t mean all Congressional tax writing and related rule-making work will grind to a halt, says John Gimigliano, principal in charge of Federal Tax Legislative and Regulatory Services with KPMG LLP’s Washington National Tax practice.
“Areas of bipartisan Congressional accord could include expired tax provisions, retirement savings incentives, some technical corrections, administration of the IRS, and infrastructure-related tax issues,” Gimigliano says. “Still, much of the next two years will be less about making new law and more about each party presenting its case to the American voter on who should be making tax policy after the 2020 presidential elections.”
A new KPMG report – “Tax Policy and the 116th Congress: Observations and Preliminary Analysis” – maps the possible points of intersection and divergence in the likely tax agendas of Congressional Democrats and Republicans.
In addition to this analysis, the report offers an overview of the new Democratic-controlled House, new players in the GOP-controlled Senate, and changing priorities of the tax-writing committees. It also identifies tax and non-tax deadlines that could affect the legislative agenda.
Key questions considered in the new KPMG report include the following:
For more information or to arrange an interview, please contact Robert Nihen.