Tax Cut 2.0
The House GOP and President Trump are taking aim and working together to create a tax cut 2.0 outline that they hope to roll out sometime in August. Each time it is brought up to reporters there is a little more clarity for what they are targeting. House Ways and Means Committee Chairman Kevin Brady is the leader on the project, currently emphasizing their development of the framework before individual ideas.
Moving forward Brady has stated that he wishes to hold listening sessions with other House Republicans to get more ideas for what could go in the new tax bill. This second phase of tax cuts will focus on making the original bill more permanent, as many of the standing pieces are only temporarily enacted through 2025. Additionally, Brady has said that extending individual tax cuts will be the prime focus of the next package. The tax cuts are expected to benefit the economy, but also increase the federal deficit. The final objective of the tax cuts is to lower the corporate tax once again, this time to 20%.
One problem for the House’s tax bill moving forward will be to overcome the hurdle of the Senate. At this moment it seems unlikely of the second tax cut passing the senate because nine Democratic votes would be needed to clear the chamber, and the Democrats have largely been opposed to recent tax acts. It will be important for you and your business to stay up to date on the tax changes, if you have questions contact us at the Center for Financial, Legal & Tax, Inc.