Tax writers pushing for tax reform vote and noncontroversial bills in July

Tax Hot Topics newsletterLawmakers are gearing up for a flurry of tax legislative action before the August recess.

House Republicans are pledging to vote on a “Tax Reform 2.0” bill before the November elections. The legislation stands little chance of enactment in the Senate, but Republicans believe the visibility of a House vote supporting tax reform will boost their campaigns. House Ways and Means Chair Kevin Brady, R-Texas, is hoping to unveil a draft bill before the August recess begins, though presidential advisor Marc Short said the White House is aiming for “late summer.”

The bill is expected to propose making the temporary provisions in the Tax Cuts and Jobs Act permanent, and could include retirement plan and IRS administration reform. Brady’s desire to include these as part of a bill with little chance of enactment could hurt the chances for passage of less controversial bipartisan efforts in these areas. Several Senate lawmakers are pushing to approve just these kinds of tax bills by unanimous consent before the August recess.

Senate Finance Committee Chair Orrin Hatch, R-Utah, and ranking minority member Ron Wyden, D-Ore., are hoping to pass the bipartisan Retirement Enhancement and Savings Act of 2018, which includes changes to automatic enrollment rules and creating multi-employer defined contribution plans. Their effort is complicated by other senators who will be eager to include their own retirement provisions on any moving tax bill.

Senate tax writers are also hoping to take up several IRS reform bills that passed the House nearly unanimously and make changes based on member and IRS priorities and pass them before the end of the year.

Contact Dustin Stamper
Director, Washington National Tax Office
T +1 202 861 4144

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