On March 24, 2017 the vote to repeal the Affordable Care Act (‘Obamacare’) was cancelled when it became clear there were not enough Republican votes to move it past the House of Representatives. All eyes have now turned to the President’s plan to reform the tax code. However, the two issues are not exclusive. Part of the strategy to focus on the repeal and replacement of Obamacare was to create savings that would further support the later tax cuts without increasing the deficit. Tax reform is still on the table and appears to be a priority for the administration and Republicans. It is likely that dynamic scoring will be used in connection with the evaluation of any tax reform bill to project the increase in revenues and income as a result of any tax cuts in an effort to further bolster support for the bill.
During this period of time prior to the anticipated reform, it is important to discuss your tax planning with competent professional advisors to consider the impact of potential changes.