In case you were not paying attention this spring, as Congress debated repealing Obamacare, a review of the process that unfolded over health care might be helpful to understand what is unfolding with tax reform.
In the House of Representatives, repeal of Obamacare was initially stalled because moderate Republicans and staunch conservatives could not reach an agreement over how it should be replaced.
Democrats did not think it should be replaced at all.
Eventually, Republicans did agree on something and the issue was taken up by the Senate where the same thing happened. Republicans could not agree on anything and Democrats refused to help.
The same process is now starting to repeat itself on tax reform, according to The New York Times in "Two Bankers Are Selling Trump's Tax Plan. Is Congress Buying?"
The Trump administration officials in charge of getting Republicans in Congress to pass a tax reform package are finding it difficult to bridge the divide between moderate and conservative Republicans.
If something cannot be worked out between those two groups, then Democrats will be needed to pass anything. For now, few Democrats are inclined to help.
This has important implications for the future of the estate tax.
If Democratic votes are needed to pass a bill, they are unlikely to agree to anything that eliminates the estate tax and might even demand that it be raised in part to pay for any tax cuts.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: New York Times (Aug. 28, 2017) "Two Bankers Are Selling Trump's Tax Plan. Is Congress Buying?"