Major Tax Changes in Draft Reconciliation Bill

The U.S. House Ways and Means Committee has released its draft budget reconciliation bill. While the provisions presented are subject to ongoing negotiations, some are more likely to pass than others. In this summary, some key provisions of the proposal are highlighted, including the tax rates on long-term capital gains and trusts and estates, elimination of valuation discounts for passive assets, and tax-free conversion of certain S corporations to tax partnerships.