Top Republican taxwriter Kevin Brady on Tuesday released an outline for a second round of tax cuts, as part of the GOP effort to keep tax reductions at the forefront of the congressional agenda.
“With this framework, we are taking the first step to change the culture in Washington D.C. where tax reform only happens once a generation,” said Brady, a Texan who chairs the House Ways and Means Committee. “We plan to work off this framework to build on the growing successes of the Tax Cuts and Jobs Act and ensure this energized economy continues moving forward.”
The centerpiece of the plan, referred to among Republicans as Tax Reform 2.0, is a permanent extension of the individual side of the tax cuts signed by President Trump in December.
Those individual tax cuts are currently set to expire at the end of 2025, including the lower tax rates, the changed child tax credit, and the new deduction for businesses that file under the individual side of the code. Republicans made the cuts temporary for procedural reasons to pass the legislation.
In addition, the outline calls for new and expanded tax breaks for savings, including unspecified universal savings accounts, and an allowance for new businesses to write off more start-up costs.
Brady suggested the outline is meant for discussion among members of Congress over the August recess.
Most of the package is not likely to pass Congress this year. Republicans will face Democratic resistance and do not have access to the procedural tool that they used to pass the tax bill while avoiding the filibuster in the Senate.
Nevertheless, Republicans could try to gain an advantage in the midterm elections by forcing another vote on tax cuts in the fall.
Tuesday’s discussion outline doesn’t mention the fiscal cost of more tax cuts, but the lost tax revenue would be major in the case of the individual provisions, which would total well over $100 billion a year.
