After the Senate finally approved sweeping tax reform in the wee hours Saturday morning - we're now set for the final stages of the process.
Next up? Reconciliation with House and Senate leaders to iron out the differences in the bills.
Despite the claims by some that there are vast differences between the bills and there could still be hang-ups that prevent a final version that could pass both chambers. That simply isn't the case. At least in my opinion after wading through the original plans.
Here's what the business end of the equation looks like:
Cuts the corporate tax rate to a flat 20 percent with limited deductions
This is identical to the House plan except it doesn't kick in until 2019
The House plan kicks in starting in 2018
Cuts the pass-through rate for businesses (S corps, Limited partnerships, etc.) to what appears to be 29.8 percent
This was another Friday change in the Senate to bring the rate below 30 percent
House plan caps at 25% - this will need to be reconciled
Eliminates the sole proprietor loop hole used by self-employed individuals
If pass through eligible business owners take a salary, that money is subjected to individual tax rates - not pass through rates
Repatriation taxes - one-time tax of 14.5 percent on cash & 7.5 percent on assets
Half a percent higher on each as compared to the House plan
It's arguable the differences on business taxes are the biggest sticking point between to House and Senate plans but as I've demonstrated they aren't that severe & I have little doubt that the reconciliation process won't be an overly challenged process.
I'm also exceedingly optimistic that we will have meaningful tax reform passed by 2018.