Although tax reform was enacted last December under the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97), the discussion of tax cuts and reform continues to be a priority among lawmakers on Capitol Hill. Additional tax bills are expected to move through committees in the coming weeks and months. These bills could include, but are not limited to, certain areas such as retirement savings and IRS reform.
Senate Majority Leader Mitch McConnell, R-Ky., took to the Senate floor on March 13 to praise the new law, touting its success and hammering Democrats’ consistent criticisms. “Even as billions of dollars are put towards raises, bonuses, and new worker benefits, they [Democrats] say it’s nothing more than ‘crumbs,’” McConnell said. “My friends across the aisle may want to repeal the tax cuts that have generated these raises, bonuses, new jobs, new investments… fortunately, Republicans in Congress will not let that happen.”
Tax Cuts Roll Back
McConnell, in his speech, referenced Senate Democrats announcement last week of their plan to roll back many of the tax cuts and benefits enacted under the TCJA. Senate Democrats propose using the potential repeal of those corporate and individual tax cuts to finance a $1 trillion infrastructure proposal. “We want to roll back the Republican tax giveaways to big corporations and the wealthy and invest that money instead in job-creating infrastructure,” Schumer has said.
Meanwhile, President Trump is calling for a “phase-two” of tax cuts. “Kevin, are we going for an additional tax cut,” Trump quipped at the White House on March 13 towards top House tax writer Kevin Brady, R-Tex., chairman of the Ways and Means Committee. “He’s the king of those tax cuts…we’re going to do a phase two, I’m hearing,” Trump added. “We’re actually very serious about that.”
In related news, the House Ways and Means Tax Policy Subcommittee is scheduled to hold a March 14 hearing to evaluate the future of certain expired tax breaks post-tax reform. Numerous stakeholders from various industries are slated to testify.