Senate Passes Tax Reform – Individual Mandate Penalty Eliminated

Senate Passes Tax Reform

Early Saturday morning, the U.S. Senate passed tax reform along party lines, by a vote of 51 to 49. The Senate version of tax reform includes a 20 percent corporate rate, rate cuts for individuals, and in a last minute addition, retention of the state and local tax deduction.

This legislation also includes the repeal of the individual mandate under the Affordable Care Act (ACA). As a reminder, under the ACA, each taxpayer is required to purchase minimum value health insurance coverage (subject to certain exemptions) or pay a penalty.

Now the House and Senate must iron out the differences between their two versions of tax reform, and send a final version to President Trump prior to the end of the year.

For more information on this topic, contact your Health Care counsel at Smith, Gambrell & Russell, LLP.

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