OMB Director Looks to Retroactive Tax Cuts/Reform by Mid-December

A tax plan will pass in mid-December, Office of Management and Budget (OMB) Director Mick Mulvaney has predicted. Although Mulvaney did not commit to whether the tax bill will be temporary tax cuts or a comprehensive, permanent tax reform package, he stated it will be retroactive to the beginning of 2017.

“If it passes by the end of the year, it will be retroactive,” Mulvaney said in an interview late last week. “We want the biggest, most aggressive tax cuts, tax reforms that we can pass into law.”

Reportedly, full consensus among GOP lawmakers, as well as the administration, has not yet been reached on key tax policy details to be included in forthcoming tax legislation (TAXDAY, 2017/09/08, W.1 ). Several Republican lawmakers have been expressing dissatisfaction with President Trump’s decision to go against Republican leadership by agreeing to Democratic leadership’s proposal for a three-month extension of government funding and the debt-ceiling (TAXDAY, 2017/09/11, C.1 ).

According to Mulvaney, however, Trump’s decision to agree with Democrats, a move that some predict will hinder tax reform prospects in December, may have actually increased the chances for success. “I think in mid-December, when the tax bill passes, people will look back at what the president did…and say…maybe he was right, cutting that deal in September was a big part of getting these taxes before the end of the year.”

White House Press Secretary Sarah Huckabee Sanders, in a September 11 press briefing, also would not speculate as to whether temporary tax cuts or a comprehensive tax reform package would prevail. With respect to whether Trump would support adding middle-class tax cuts to an end-of-year tax extenders bill if tax reform does not pan out, Sanders told reporters that a complete tax reform package is the president’s goal. “If that doesn’t happen, we’ll look at other options at that point,” she added.

By Jessica Jeane, Wolters Kluwer News Staff

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.



All stories by: CCHTaxGroup