On May 12, the House Ways and Means Committee released its recommended tax provisions to be included in the budget reconciliation bill that Congress is considering. These provisions are politically charged, and consequently, are controversial.

The bill was 389 pages long as of that release. This was a first draft of provisions that are likely to be rewritten several times before the reconciliation bill becomes law. From a tax professional’s perspective, many of the provisions add complexity to the Internal Revenue Code.

The Joint Committee on Taxation estimates that, between 2025 and 2034, the Ways and Means proposal would result in tax cuts of $7.7 trillion, which are partially offset by tax increases of $3.9 trillion for a net cost of $3.8 trillion. Many of these costs are front-loaded as these provisions would increase the deficit by about $1.2 trillion in 2026 and 2027. Many believe increased deficits of this magnitude will give bond markets indigestion, which could affect the final version of the bill.

While Democrats claim these provisions are tantamount to providing tax cuts to billionaires, that may be an overstatement. However, it is fair to say that the majority of the tax cuts are business-related. For example, it will become........

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