House Pushes Through GOP’s Tax Reform 2.0
The House of Representatives pushed through a legislation package nicknamed Tax Reform 2.0 that would make individual tax cuts permanent among other proposals Friday.
The legislation is expected to stall in the Senate, although its Republican supporters could bring it back at some point after the midterm elections, reported CNBC.
The package consists of three bills, which are:
- The Protecting Family and Small Business Tax Cuts Act of 2018, which would “lock in” the individual tax cuts that Republicans touted when they first passed in December 2017
- The Family Savings Act of 2018, which purports to help Americans save for retirement as well as make funds in education accounts more accessible
- The American Innovation Act of 2018, which lets fledgling businesses “deduct up to $20,000 in start-up expenses” under certain rules, according to CNBC
“Tax reform is working,” House Speaker Paul Ryan wrote on Twitter Friday. “The American economy and our workforce are thriving. These Tax Reform 2.0 bills make lower rates for individuals and small business permanent, and help families further plan for the future.”
The tax cuts bill would also make certain provisions to save taxpayers money permanent. The bill would make a new child tax credit, a higher federal estate tax exemption and a doubled standard deduction permanent rather than allowing them to expire in 2025, according to CNBC.
Proponents of the bill say slashed taxes will equal a healthier economy, while its critics point out they could come with a “$627 billion price tag” in the coming decade, according to a Joint Committee on Taxation analysis cited by CNBC.
The family savings bill contains a retirement savings provision that could be considered by the Senate later in 2018 because of “an existing bipartisan bill,” reported CNBC. It would knock down a rule that stops individuals from contributing to “traditional individual retirement accounts” once they hit 70 and a half years old, reported CNBC.
The family savings bill also lets families use 529 education accounts for homeschooling costs, reported CNBC.
Representatives essentially voted with their parties in passing the three bills.
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