House Republican tax writers are currently crafting a family friendly, phase two tax reform bill. The legislation will make the tax code more beneficial for individuals and families, House Ways and Means Committee Chairman Kevin Brady, R-Tex., told reporters earlier this week.
Family Friendly, Phase Two
“The legislation we are considering will definitely make the individual tax cuts permanent, which is huge for families,” a Ways and Means Committee spokesperson told Wolters Kluwer on May 8. Individual tax cuts under the Tax Cuts and Jobs Act (TCJA) are currently temporary in compliance with Senate budget rules at the time of the legislation’s approval.
Additionally, the committee is considering proposals that would streamline the retirement savings process, the committee spokesperson told Wolters Kluwer. Previously, Brady said that he would like to see a vote on the next tax bill before midterm elections in November. Reportedly, Republicans hope for Democratic support on the next family-friendly tax bill in conjunction with the midterm elections.
Across the Aisle
Most Congressional Democrats have criticized the new tax law for benefiting the wealthy and corporations while offering temporary tax breaks to individuals. “We object to the way Republicans did this: in the speed of light and dark of night – giving $1.5 trillion in tax breaks to wealthy people and big corporations while raising taxes on 86 million middle class families,” House Minority Leader Nancy Pelosi, D-Calif., tweeted on May 8.
Using the budget reconciliation process, the GOP-majority Congress passed the TCJA without Democratic votes. However, Republicans likely need Democratic support for a “phase two” tax reform bill. Under Senate rules, Democratic support would be needed for new tax legislation to clear the Senate’s 60-vote threshold.
By Jessica Jeane, Wolters Kluwer News Staff