Federal Tax Reform Legislation Passed

January 4, 2018

On December 20th, Congress passed H.R.1 (formerly called the Tax Cuts and Jobs Act), the largest change to the tax code in 30 years. The bill passed the Senate 51-48 along party lines, and the House 227-203.

The legislation is projected to increase the Federal budget deficit by approximately $1.5 billion, which would trigger $25 billion in annual Medicare cuts and could lead to significant cuts to Medicaid and other entitlement programs in order to address the deficit in the future. President Trump has indicated that he will sign the bill into law in January, which would delay these triggered cuts until 2019, and would push back the date by which Congress has to decide whether to waive the cuts until after the November 2018 elections.

The attached document summarizes key provisions of the bill that will affect the health care industry. The text of the bill is available here.