Tax Reform Update
Overall it is still a waiting game on potential tax reform referred to as "One Big Beautiful Bill" (OBBB) . The Senate is still working on their response and potential modifications to the proposed OBBB passed by the House.
Given the July 4th "deadline", we should start to see more specifics on the proposed changes from the Senate in the coming weeks. Until then, it is difficult to read the tea leaves as things seem to change daily. However, the primary debate seems to focus on balancing the policy objectives of the administration (tax cuts, increased spending on military, immigration, etc.) with the potential impact of these on the federal deficit. Overall, it is too early to predict where things will land but you can refer to our past newsletter on this topic for the key aspects of the bill passed by the House.
Why the July 4th deadline?
The tax reform being considered includes an increase in the debt limit which essentially keeps the government open. While being somewhat patriotic, the July 4th deadline is more a practical need because if the OBBB is not finalized by then, Congress will have to shift its focus to pass another stop gap funding bill to keep the government open. Right now, the current debt limit is projected to be reached around the end of July.
STAY TUNED - WE WILL PROVIDE ADDITIONAL UPDATES AS INFORMATION BECOMES AVAILABLE
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