Republicans advanced a second round of tax cuts to the House floor Thursday, setting up a major messaging vote for the chamber before the midterm elections.
The House Ways and Means Committee voted along party lines to advance legislation, dubbed “Tax Reform 2.0” by Republicans, that would make permanent the tax cuts for individuals included in the tax overhaul signed by President Trump in December.
“Tax Reform 2.0 is our commitment to American workers that our code will remain the most competitive in the world,” said Rep. Kevin Brady, R-Texas, the committee’s chairman. “Never again will America fall so far behind.”
The centerpiece of the legislation would get rid of the individuals’ tax cuts 2025 end date that Republicans wrote into the law for procedural reasons. The bill advanced Thursday would permanently extend the lower individual income tax rates, the child tax credit, the larger standard deduction, and the new tax break for businesses that file through the individual side of the tax code. The cuts would represent around $250 billion annually for the years after 2025.
A vote on the legislation will prove tricky for some Republicans in high-tax blue states, however, because it would also make permanent the $10,000 cap on state and local deductions. That provision has proved politically volatile in states like New York, New Jersey, and California, states where many vulnerable Republicans are facing tough elections.
Republicans also approved two other bills as part of the package: One that would allow new business owners to write off more start-up costs, and another that would create new universal savings accounts and expand access to existing tax-privileged accounts.
Democrats charged that the legislation would represent another round of tax cuts for the wealthy that add to the deficit.
“Republicans will pay any price, they will bear any burden, they will ignore any tweet tantrum, as long as billionaires are protected on their tax breaks,” said Rep. Lloyd Doggett, R-Texas.
