More Tax Changes?
Recently, the House Budget Committee has approved a tool that Republicans could use for tax reform phase two. If the budget resolution is approved by both chambers of Congress, it would allow Congressional Republicans to approve tax reform phase two without Democratic support.
The House Ways and Means Committee Chairman, stated that the outline for phase two could come as early as August. Furthermore, Majority Leader predicted they would be able to get the resolution passed before the midterm elections in November.
The new resolution titled, A Brighter American Future, is a movement toward “pro-growth” provisions of the TCJA. Kevin Brady has insisted multiple times that the new resolution will be focused on the individuals, aiming to lower tax brackets or adjust them further. Accordingly, they will also aim to make the 20% deduction for pass-through entities permanent instead of temporary until 2025.
On the other side, Democrats continually have criticized the TCJA and potential further changes to the tax code. Democrats have remained united in their belief that the GOP are forcing their way through to change parts of the code that don’t benefit the majority of people. The Democrats are concerned with the movement of saving money by cutting education and healthcare.
Whatever the outcome of the resolution, it seems likely that we are on the brink of another tax change. The question is if it comes before or after the midterm elections. With a potential tax change on the horizon be sure to stay up to date on your individual taxes, and if you need help contact us at the Center for Financial, Legal & Tax, Inc.