Time for Phase 2?
Everyone remembers when the Tax Cuts and Jobs Act was rolled out in December, it was widely regarded as the largest tax reform in over thirty years. If you thought it was the end, it appears as though the TCJA was only the beginning.
In June it was reported that Chairman of the House Ways and Means Committee, Kevin Brady, was planning on releasing a “phase two” tax reform outline in August. The exact time and date of the release remains to be seen, but Kevin Brady seemed optimistic about releasing the outline prior to the August recess.
Brady stated that “phase 2” will be focusing more on the individual side of the tax code. Furthermore, the new act will have the target of making the pieces of the TCJA permanent, instead of the current situation of the expiration of clauses around 2025. President Trump has stated that he hopes to bring the corporate tax rate down to 20%, and then use the rest of the tax plan to help the middle class.
Brady and other congressman have stated they hope to get the bill passed before the midterm elections in November, but that would require the support of nine democratic senators to reach the 60-vote threshold. With the fate of this bill uncertain it will be important for individuals and businesses to stay up to date on the most current tax codes. You can look to these posts and articles from the Center for Financial, Legal & Tax, Inc. for updates surrounding Phase 2.