On Monday, June 16, 2025, the U.S. Senate Finance Committee released legislative text of the tax title to be included in the Senate’s version of the budget reconciliation bill. KPMG LLP (U.S.) will issue a comprehensive report comparing the House and Senate tax proposals and analyzing the effect the proposed legislation would have on global mobility programs by the end of the week.1
WHY THIS MATTERS
As noted below, many of the tax provisions in the House-passed H.R. 1 (the budget reconciliation bill known as the “One Big Beautiful Bill Act”) are included in the Finance Committee release, increasing the likelihood that these provisions will be included in any final bill. Global mobility programs may want to work with their tax service providers to assess and model the impact these provisions may have on program costs should such provisions eventually become law.
For more information on the One Big Beautiful Bill Act, see GMS Flash Alert 2025-105 and the report authored by KPMG LLP that details the provisions of the House bill that would have the greatest impact on global mobility programs. The report will be updated soon to include a discussion of the Senate Finance Committee’s tax proposals.
Tax Proposals of Interest to Global Mobility Programs
Like the One Big Beautiful Bill Act passed by the House of Representatives on May 22, 2025, the Senate’s version of the legislation would generally make the tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent. However, the Senate bill makes several modifications to the House bill.
The list below highlights the proposed tax provisions that may affect global mobility programs:
- Permanent extension of:
- the lower regular income tax rate schedules for individuals;
- the increased standard deduction;
- the increased child tax credit, with modifications;
- the credit for other dependents;
- the increased Alternative Minimum Tax exemption and phase-out thresholds;
- the limitations on the itemized deductions for qualified residence interest and personal casualty losses.
- Permanent repeal of:
- the moving expense deduction;
- the exclusion from gross income for qualified moving expense reimbursements;
- the personal exemption deduction;
- miscellaneous itemized deductions.
- Limitation on tax benefit of itemized deductions.
- Enforcement of remedies against unfair foreign taxes.
- Limitation on individual deductions for state and local taxes.
- Excise tax on certain remittance transfers.
KPMG INSIGHTS
Next Steps
The Senate Finance Committee’s release is a significant milestone in the budget reconciliation process. However, further changes to the proposal are expected. In addition, the budget reconciliation bill will need to be voted on in the Senate; and the Senate and House must both approve the same reconciliation bill for it to be sent to the president to be signed into law.
KPMG LLP will continue to provide updates as the proposed legislation works its way through the process in Congress.
FOOTNOTE:
1 For the text of the legislation released by the Senate Finance Committee, see: https://www.finance.senate.gov/imo/media/doc/finance_committee_legislative_text_title_vii.pdf.
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Disclaimer
The above information is not intended to be “written advice concerning one or more federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
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