On Nov. 2, 2017, House Republicans released the Tax Cuts and Jobs Act, major tax reform legislation that contains sweeping changes for business and individual taxes. Should the GOP be successful in getting tax reform through Congress, it would represent the largest revamp to the U.S. tax code in 31 years. Reactions to the plan were mixed. While some lawmakers applauded the cuts to the corporate tax rate, other lawmakers voiced concerns over the plan’s increase in the standard deduction and the elimination of the deduction for state and local taxes.
The House Ways and Means Committee is scheduled to begin a multi-day markup of the tax bill on Nov. 6. The Senate is expected to launch a parallel process in the coming weeks, led by the Senate Finance Committee. The goal for Congressional Republicans is to resolve any differences and pass a final bill before year’s end.
Impact on General Dentistry: The draft tax plan calls for lowering the corporate tax rate to 20 percent and the rate for pass-through entities to 25 percent. However, neither rate would be available to “professional services” – such as dentists, lawyers, accountants, etc. The AGD is still reviewing the proposal and will continue to report on changes made to the plan as it moves through the legislative process.