While the certainty of passing isn't known, companies who are not C corporations e.g. LLC's, LLPs, partnerships, S corps (referred to collectively as passthrough entities), should keep a close eye on the proposed tax reform 2.0. The goal is to make the 20% deduction for certain passthrough entities, which expires at the end of 2025 under the current tax law, a permanent deduction. If passed under Tax Reform 2.0, this would increase the fair market value of passthrough entities (all other factors held constant) given the lower permanent tax rate would increase cash flow into perpetuity. Currently, when valuing a passthrough entity, the expiration of the 20% deduction must be taken into consideration by applying a higher tax rate (pre tax reform rates) into the valuation.
Permanent tax cuts. The language in the framework kicks off by suggested that there will be a push to make tax rate cuts for individuals (including that pass-through deduction meant to add small businesses) permanent. Specifically, the framework says that a second round of tax reform “is about locking in these tax cuts for middle-class families and small businesses.” Currently, tax cuts for corporations are permanent, while those for individuals will expire - a plan which was introduced in the Senate version of the bill.