The House and Senate just passed different versions of proposals to restructure the federal income tax. As of December 12, 2017, a House-Senate conference committee was reconciling the two bills.  The bills reduce the corporate tax rate to 20 percent, introduce a preference for income from pass-through businesses, reduce some business tax benefits, reform international tax rules, and make numerous changes in the individual income tax. The bills would increase the federal deficit and disproportionately benefit high-income taxpayers and may cause millions to lose health insurance coverage. They also include many provisions that are poorly understood and may have unintended consequences.

This article originally appeared in Harvard Business Review.