Trump Administration, House Republicans Begin Discussions on ‘Tax Cuts 2.0’
The Trump administration and House Republicans are beginning discussions on a new tax cuts plan informally known as "Tax Cuts 2.0." A spokesperson for House Ways and Means Committee ranking member Kevin Brady (R-Texas) chief architect of Republicans’ 2017 tax reform, confirmed to Wolters Kluwer on November 4 that lawmakers are actively discussing new tax cuts with the White House.
Tax Cuts 2.0 Slated for 2020
As for the timing of the new tax cuts, Brady told reporters at his latest press briefing that the plan will likely move in 2020. "I haven't talked to him [President Trump] about anything being proposed this year, but there will be a pro-growth agenda for the 2020 election that will include continued tax cuts," Brady said.
Likewise, Larry Kudlow, the White House’s top economic advisor, reiterated on November 1 that the tax cuts plan is in the works. Although still preliminary in its development, the new plan is expected to be geared primarily toward middle-income taxpayers. "I do not have any details…but we would like to see middle class tax cuts," Kudlow said.
It is expected on Capitol Hill that some of these anticipated tax cuts could include making permanent the individual and small business provisions of the Tax Cuts and Jobs Act (TCJA), which are set to expire in 2026. Notably, however, the House cleared a "Tax Reform 2.0" package in the 115th Congress, which would have made permanent these TCJA provisions, but it never reached the Senate floor even with both chambers holding a Republican majority. At this time, chances of a similar package of tax cuts, whether those cuts are additional or make permanent provisions in the TCJA, clearing the currently divided Congress appear slim to none.
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