Tax Cuts 2.0
Speculated since spring of 2018, the GOP has been talking about pushing forward with another round of tax cuts, since been dubbed Tax Cuts 2.0. Back in July the initial belief was an outline may come out in August, but August came and went with little news besides a very vague picture of what may come. Well that time may have come to an end, recently House Speaker Paul Ryan and Majority Leader Kevin McCarthy have said they plan to hold a floor vote on the bills by the end of the month.
One obstacle that lies in the path of passing another round of tax laws is the Senate. Currently, the House is controlled by Republicans so passing it there would be less of a challenge; however, the Senate is expected to wait to vote until after midterms or hold-off entirely. Currently, neither side has the 60 vote requirement for traditional bill passage; however, Republicans do currently have a majority in the Senate and the bill could be passed 51-49 through reconciliation similar to the Tax Cuts and Jobs Act.
The new bills are set to focus on making portions of the Tax Cuts and Jobs Act more permanent. Additionally, there was talk of lowering the corporate tax rate again to 20%, and maybe creating a new tax-deferred savings account for education and retirement.
With Midterm elections around the corner and the positioned power up for change in the House and Senate, it is best if you stay on top of potential tax changes that could affect you. If you have questions, contact us at the Center for Financial, Legal & Tax Services, Inc.