Phase Two of Tax Reform
Recently, as virtually all of America is aware, Congress and the President passed the Tax Cuts and Jobs Act, which substantially affects the way individuals will file their taxes. It seems, however, that the tax changes may just be beginning with the recent comments from President Donald Trump and Congressman Kevin Brady.
In a string of recent comments from both parties, it seems that this Phase Two of tax cuts may be more directly targeted at the individuals. Individual tax cuts were not made permanent in the TCJA due to budgetary restrictions. In this phase two, they seem to be exploring the options to make individual tax cuts permanent.
On the other side, some lawmakers remain united in opposition to the TCJA because it mainly benefits the top 1% of wealthy Americans, instead of the middle class, but is being advertised as a middle class tax cut. Democratic lawmakers have said they will be reluctant to work with republican lawmakers so long as there remains a divide in priority for tax cuts.
Tax reform is a difficult thing to pass and whether or not phase two comes to fruition is wholly dependent on the lawmakers working together. Individual taxpayers will want to stay informed on any potential changes looming with some lawmakers stating phase two will be focused on permanent individual tax cuts. If you have questions about financial, legal, or tax advice, feel free to contact us at the Center for Financial, Legal & Tax Planning, Inc.