{"id":14137,"date":"2025-05-12T14:17:30","date_gmt":"2025-05-12T21:17:30","guid":{"rendered":"https:\/\/familyenterpriseusa.com\/?p=14137"},"modified":"2025-05-12T14:17:38","modified_gmt":"2025-05-12T21:17:38","slug":"translating-the-initial-ways-and-means-legislative-language-ahead-of-tuesdays-markup","status":"publish","type":"post","link":"https:\/\/familyenterpriseusa.com\/feusa\/translating-the-initial-ways-and-means-legislative-language-ahead-of-tuesdays-markup\/","title":{"rendered":"Translating the Initial Ways and Means Legislative Language Ahead of Tuesday\u2019s Markup"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;4px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_cta title=&#8221;The data is in! See what family owned businesses are saying about today\u2019s challenges and opportunities.&#8221; button_url=&#8221;https:\/\/familyenterpriseusa.com\/family-business-survey\/&#8221; button_text=&#8221;Read the 2025 Annual Survey Executive Survey now! Click here.&#8221; disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Call To Action Top&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; header_font_size=&#8221;22px&#8221; background_color=&#8221;#397389&#8243; custom_button=&#8221;on&#8221; button_bg_color=&#8221;#ff0019&#8243; custom_margin=&#8221;-17px|||||&#8221; custom_padding=&#8221;16px||19px|||&#8221; global_module=&#8221;9695&#8243; saved_tabs=&#8221;all&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_cta][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text admin_label=&#8221;1&#8243; _builder_version=&#8221;4.27.4&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;16px&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p><strong><em>Key Takeaways and Implications of this Initial Tax Language<\/em><\/strong><\/p>\n<h1><strong>On Friday evening, Ways and Means Committee Chairman Jason Smith (R-MO) released initial legislative language for the Committee&#8217;s scheduled markup on Tuesday, May 13, at 2 p.m.<\/strong><\/h1>\n<p>&nbsp;<\/p>\n<h2><em><strong>In general, the 28-page text is limited to extension of the expiring individual tax provisions of the Tax Cuts and Jobs Act of 2017 (\u201cTCJA\u201d).<\/strong> <\/em><\/h2>\n<p>&nbsp;<\/p>\n<p>This text is expected to be expanded to include other parts of the tax title in the Chairman\u2019s comprehensive amendment\u2014the amendment in the nature of a substitute (\u201cAINS\u201d)\u2014 which could be released late this weekend or Monday morning, unless the markup is postponed to later in the week.<\/p>\n<p>Despite the limited nature of the initial language, there are several key takeaways and implications of the \u00a0text, including the following:<\/p>\n<p><strong>1. The Individual SALT CAP Remains Unresolved. <\/strong>The initial language did not make any changes to the individual SALT cap of $10,000. This does not mean that Republicans want the cap to expire after December 31, 2025. \u00a0Rather, it means that House Republicans have not reached consensus on how much to increase the cap. \u00a0While Rep. Nicole Malliotakis (R-NY), who serves on the Ways and Means Committee, endorsed a cap of $30,000, four of her Republican colleagues from New York publicly rejected that amount. The discussions regarding the cap will continue this weekend and into next week. If an agreement is reached soon, it could appear in Chairman Smith\u2019s expected amendment prior to the markup. Alternatively, Republicans may wait until the Rules Committee before including a provision that increases the cap. Unless the SALT cap, with or without an expansion, is extended or made permanent, the bill will lose as much as $1 trillion of revenue essential to meeting the Committee\u2019s instructions under the budget resolution.<\/p>\n<p><strong>2. The Passthrough Deduction Is Increased to 22% from the Current 20%. <\/strong>\u00a0While not a dramatic increase, this change can reduce the effective rate of taxation for passthrough income to less than 29% assuming the current top 37% rate. \u00a0The increase also is a partial hedge in the event that Congress increases the top 37% marginal rate or imposes a new 39.6% rate for millionaires. \u00a0Either way, this increase indicates strong support for section 199A and gives it momentum as the process moves forward.<\/p>\n<p><strong>3. The Initial Language Increases the Standard Deduction by Up to $2,000. <\/strong>The text increases the standard deduction for tax years 2025 through 2028 by $1,000 for single filers, $1,500 for head of household filers and $2,000 for married filers.<\/p>\n<p><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-13661 aligncenter size-large\" src=\"https:\/\/policyandtaxationgroup.com\/wp-content\/uploads\/2025\/05\/Standard-Deduction-chart-1024x293.jpg\" alt=\"\" width=\"1024\" height=\"293\" title=\"\"><\/p>\n<p>The benefit of this increase depends on the tax bracket a taxpayer is in, but for a taxpayer in the 24% bracket, the tax reduction could be $240 for single filers, $360 for head of household filers, and $480 for married filers.<\/p>\n<p><strong>4.\u00a0Additional Family Tax Relief. <\/strong>The text increases the Child Tax Credit to $2,500 for four years, and targets additional relief to low- and middle-income families through a number of provisions. \u00a0In addition to the increase in the standard deduction noted above, it would expand the individual tax brackets by an additional inflation amount for all but the top two brackets (e.g., 35% and 37%) to increase the amount of taxable income subject to lower rates, which would also be made permanent.<\/p>\n<p><strong>5.\u00a0Extension of Current Law for International Tax Provisions. <\/strong>The legislation would lock in current law for U.S. multinationals under the international tax rules adopted in TCJA. It would prevent the rate increase scheduled to apply under the Global Intangible Low-Taxed Income (GILTI) in 2026, while preserving the current 37.5% deduction for exports of domestically produced goods under the Foreign-Derived Intangible Income (FDII) deduction. Similarly, the legislation would make permanent the 10% tax rate and current treatment of tax credits under the Base Erosion Minimum Tax (BEAT) rules.<\/p>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; disabled_on=&#8221;off|off|off&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Brownstein Hyatt Farber Schreck Logo &#038; About&#8221; _builder_version=&#8221;4.22.1&#8243; text_font=&#8221;||||||||&#8221; text_font_size=&#8221;16px&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; link_option_url=&#8221;https:\/\/www.bhfs.com\/&#8221; link_option_url_new_window=&#8221;on&#8221; border_color_all=&#8221;#FFFFFF&#8221; border_style_all=&#8221;none&#8221; global_colors_info=&#8221;{}&#8221; global_module=&#8221;6751&#8243; theme_builder_area=&#8221;post_content&#8221;]<\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"aligncenter wp-image-7889 \" src=\"https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2023\/04\/brownstein-logo-positive-RGB.png\" alt=\"\" width=\"567\" height=\"84\" title=\"\"><\/p>\n<p><strong>About Brownstein Hyatt Farber Schreck<br \/><\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\n<p>[\/et_pb_text][et_pb_divider color=&#8221;#397389&#8243; divider_weight=&#8221;2px&#8221; disabled_on=&#8221;off|off|off&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Become a member text&#8221; _builder_version=&#8221;4.27.4&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; link_option_url=&#8221;https:\/\/familyenterpriseusa.com\/donate-2\/&#8221; global_module=&#8221;5822&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h4><em>We hope you&#8217;ve enjoyed this article. While you&#8217;re here, we have a small favor to ask&#8230;<\/em><\/h4>\n<p>As we prepare for what promises to be a pivotal year for America, we&#8217;re asking you to consider becoming a member.<\/p>\n<p>The need for fact-based reporting of issues important to <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">family owned businesses<\/a> and protecting a <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-stories\/\">lifetime of savings<\/a> has never been greater. Now more than ever, <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">successful families<\/a> and <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-stories\/\">family owned businesses<\/a> are under fire. That&#8217;s why <a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high <a href=\"https:\/\/familyenterpriseusa.com\/category\/income-taxes\/\">income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, enactment of a wealth <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, and the continued burden of the gift <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>, <a href=\"https:\/\/familyenterpriseusa.com\/category\/estate-taxes\/\">estate tax<\/a> and generation skipping <a href=\"https:\/\/familyenterpriseusa.com\/category\/taxes\/\">tax<\/a>.<\/p>\n<p>[\/et_pb_text][et_pb_button button_url=&#8221;https:\/\/familyenterpriseusa.com\/donate\/&#8221; button_text=&#8221;Become a Family Enterprise USA Member&#8221; button_alignment=&#8221;center&#8221; disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Become FEUSA member button&#8221; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; custom_button=&#8221;on&#8221; global_module=&#8221;6503&#8243; global_colors_info=&#8221;{}&#8221;][\/et_pb_button][et_pb_divider color=&#8221;#397389&#8243; divider_style=&#8221;dotted&#8221; divider_weight=&#8221;2px&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_divider][et_pb_video_slider disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Video Slider Family Business Stories 2&#8243; _builder_version=&#8221;4.21.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; global_module=&#8221;6670&#8243; theme_builder_area=&#8221;post_content&#8221;][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=03T2VODneEg&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=fHIxWaTwK64&#8243; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][et_pb_video_slider_item src=&#8221;https:\/\/www.youtube.com\/watch?v=TI7P07GbNdU&#038;t=27s&#8221; _builder_version=&#8221;4.19.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; show_image_overlay=&#8221;off&#8221;][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;FEUSA Statement&#8221; _builder_version=&#8221;4.21.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; link_option_url=&#8221;https:\/\/familyenterpriseusa.com\/donate-2\/&#8221; global_module=&#8221;5910&#8243; saved_tabs=&#8221;all&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<hr \/>\n<p><a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> promotes <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">generationally<\/a> owned <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-businesses\/\">family business<\/a> creation, growth, viability, and sustainability by <a href=\"https:\/\/familyenterpriseusa.com\/about\/\">advocating for family businesses<\/a> and their lifetime of savings with <a href=\"https:\/\/familyenterpriseusa.com\/category\/family-business-caucus\/\">Congress<\/a> in Washington DC.\u00a0 Since 2007, <a href=\"https:\/\/familyenterpriseusa.com\/category\/feusa\/\">Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and <a href=\"https:\/\/familyenterpriseusa.com\/category\/multi-generational-business\/\">multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0<a href=\"https:\/\/familyenterpriseusa.com\/membership\/\">Family foundations can donate.<\/a><\/p>\n<hr \/>\n<p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Hash tags &#038; Tags&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; global_module=&#8221;6498&#8243; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>#incometax #CapitalGainsTax #R&amp;DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways and Implications of this Initial Tax Language On Friday evening, Ways and Means Committee Chairman Jason Smith (R-MO) released initial legislative language for the Committee&#8217;s scheduled markup on Tuesday, May 13, at 2 p.m. &nbsp; In general, the 28-page text is limited to extension of the expiring individual tax provisions of the Tax [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":14141,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,43,3,92,76,36],"tags":[],"class_list":["post-14137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-estate-taxes","category-feusa","category-multi-generational-business","category-income-taxes","category-taxes"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14137"}],"version-history":[{"count":3,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14137\/revisions"}],"predecessor-version":[{"id":14142,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14137\/revisions\/14142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/14141"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}