After waiting several weeks, er, make that months, and enduring endless tweets in August, we seem to have a “drum roll” tax plan.
I said plan, because that’s what it is. A plan can’t become law. There is no bill, no “language” as one refers to what actually may someday become a law. Still, there are some guideposts to look at.
You may wonder why isn’t there a bill yet. The answer is simple. The majority is seeking conceptual “yeses” on a general idea, getting “commits” for it, and then reducing the idea to actual legislative language. Okay ... they run the farm, not I.
Let me walk you through some of the highlights I think important for individuals.
Expect no retroactivity. Whatever it is they may do, it may not take effect until January 1 2018. Many times prior, mid-year tax legislation was made effective back to the 1st of that year, but tweets from House Speaker Ryan suggest it won’t be this time. Many people postponed deals and receiving income to future years (in expectation of tax law changes and Obamacare repeal) and that advice seems to hold. In fact, the Treasury reports a drop in tax collections, probably due to people holding on. (Note: best thing in the planet, the ability to control one’s income).