As reported in GMS Flash Alert 2025-105, on May 22, 2025, the U.S. House of Representatives passed H.R.1, the budget reconciliation bill known as the One Big Beautiful Bill Act.1  On Monday, June 16, 2025, the U.S. Senate Finance Committee released legislative text of the tax subtitle for potential inclusion in the bill.2  If enacted into law, a number of the provisions could have an impact on global mobility program costs.

Click here to read a report authored by KPMG LLP (U.S.) which details the provisions of the bill that would have the greatest impact on global mobility programs if enacted into law.  The report is one of a series of reports that KPMG LLP has prepared on the bill, which can be found here.

WHY THIS MATTERS

While the Senate bill is expected to undergo changes and still has a few legislative hurdles to clear if it is to become law, the text provides insight into the tax provisions that may eventually be enacted.  As a result, global mobility program managers are given the opportunity to assess and model the impact such provisions may have on program costs should the provisions eventually become law.

Tax Proposals of Interest to Global Mobility Programs  

Like the One Big Beautiful Bill Act, 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 KPMG report compares the House bill and Senate bill, and provides insights relevant to global mobility programs and assignees concerning the following proposals:

  • 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

Further changes to the tax subtitle could occur as the bill is considered by the Senate budget committee.  In addition, the Senate and House will ultimately need to approve the same version of the bill before it is sent to the president to be signed into law.

KPMG LLP will continue to provide updates as the bill works its way through the budget reconciliation process in Congress. 

FOOTNOTES:

1   See on the www.congress.gov website: "H.R.1 - One Big Beautiful Bill Act."

2  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.

Contacts

Martha Klasing
Martha Klasing

Partner, Washington National Tax – Global Mobility Services

KPMG in the U.S.

Rob Fagan
Rob Fagan

Senior Manager, Washington National Tax – Global Mobility Services

KPMG in the U.S.

John T. Seery
John Seery

Managing Director, Washington National Tax – Global Mobility Services

KPMG in the U.S.

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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.

The information contained in this newsletter was submitted by the KPMG International member firm in the United States.

GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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