Tax Cuts 2.0 on the Way?
Is it finally on its way? House Republican tax writers have finalized the “Tax Reform 2.0” legislative package which is supposed to reach the House floor for a vote a soon. Back on September 13, the House Ways and Means Committee debated the presentation of the bill which lasted almost 7 hours. The bill focuses primarily on making permanent individual and small business tax cuts, creating incentives for retirement savings and business innovation. Additionally, they approved three bills:
Protecting Family and Small Business Tax Cuts Act of 2018
Family Savings Act of 2018
American Innovation Act of 2018
The individual and small business tax cuts will aim to make the current tax cuts permanent. Some of the temporary cuts they aim to make permanent will include: (1) lowered individual income tax rates; (2) 20-percent deduction of income for qualifying passthrough entities, (3) $12,000 (individual) and $24,000 (married filing jointly) standard deduction; and $10,000 annual cap on state and local tax deduction.
The family savings and business innovations law changes will aim to simplify certain rules for employer retirement plans. Furthermore, they will look to the age limit on IRA contributions and expand 529 plans to include trade schools.
All in all, there could be another large tax reform coming, so it will be best to stay informed. Keep up to date with all tax changes by reading our blogs or staying in touch with our professionals at the Center for Financial, Legal & Tax, Inc.