In New Round Of Tax Cuts, Retirement Changes Seen As Most Likely To Pass

House Ways and Means Chairman Kevin Brady is preparing to release “Tax Reform 2.0” in which the individual rate cuts of 2017’s Tax Cuts and Jobs Act (TCJA) permanent. Much of the new legislation appears unlikely to pass, however, because it would need the support of at least 9 Democrats. Not a single Democrat voted in support of the TCJA.

But a finessing of retirement included in the legislation is expected to receive bipartisan support. Brady told reporters he’s including a retirement-related bill in his draft that has the backing of Senators Orrin Hatch and Ron Wyden, the top Republican and Democrat on the Senate Finance Committee. Called the Retirement Enhancement and Savings Act, Brady acknowledged that it is the only part of the tax cut plan that Democrats support, and best chance of passing would be by carving it out from the broader legislation.

An extension of the tax cuts has been viewed as a House effort to score political points ahead of the November election. House Speaker Paul Ryan has pledged to vote on the legislation, while Senate Majority Leader Mitch McConnell has only said he’ll consider it.

See Laura Davison, In New Round Of Tax Cuts, Retirement Changes Seen As Most Likely To Pass, Bloomberg, July 18, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.