House Minority Leader Kevin McCarthy said that efforts are underway to produce another round of tax cuts following President Trump’s comments in Davos that Congress should take up another tax cut package.
“It’s something we always talked about,” McCarthy said of a possible “tax cuts 2.0” bill on CNBC on Monday. “There are a number of provisions that did not get made permanent in the last tax cut bill because no Democrat would work with us.”
McCarthy was referring to the individual tax cuts that were enacted as part of the tax reform bill in 2017.
Among those tax cuts was the “pass-through” deduction, a new break for businesses that file through the individual side of the tax code. The deduction is currently scheduled to expire at the end of 2025.
However, the Democrat-controlled House is highly likely to oppose making the provision permanent on the grounds that it benefits wealthier taxpayers and not the middle class.
House Republicans introduced legislation in 2018, when they had the majority, to make the 2017 tax cuts permanent but were unable to get those measures signed into law.
Trump promised last week that he would unveil a middle-class tax cut plan within the next three months.
