The House Ways and Means has approved legislation for “Tax Reform 2.0,” sending the measure to the floor for a full vote. The package, a Republican-led follow up to the Tax Cuts and Jobs Act (TCJA), contains three bills which permanently extend several of the TCJA’s individual tax provisions, make reforms to promote general and retirement savings, and create incentives to spur innovation and startup growth.
The timing of the effort is no coincidence. With midterm elections less than two months away, Republicans appear hopeful this last-ditch endeavor to further reform the tax code will bolster their closing bid to voters while putting Democrats in the potentially uncomfortable position of voting against taxpayers. However, chances of major tax legislation being enacted in this Congress are slim. There doesn’t appear to be consensus for the legislation as a whole even among Republicans, and three bills combine to add more than $657 billion to the deficit over the next decade.
For more details, read our Tax Legislative Update
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