Congress Pushes Forward this Week with Tax Reform 2.0

House Republicans continue to push what has been titled “Tax Reform 2.0” through Congress, hoping to get the legislation’s new three tax bills passed: H.R. 6760, H.R. 6756, and H.R. 6757.

H.R. 6760 Protecting Family and Small Business Tax Cuts Act of 2018, is sponsored by Representative Rodney Davis (R-IL). Notably, the bill would make the Tax Cuts and Jobs Act (TCJA) individual and small business tax cuts (the so-called pass-through tax cuts) permanent. The individual cuts are currently set to expire in 2025, while the TCJA corporate tax cuts are permanent.

Additionally, under the bill, the medical expense deduction would remain in place with a lower floor of 7.5% for tax years 2017 through 2020; the TCJA only allowed the limit through 2018. The bill would also make clear that, to claim the credit, a taxpayer identification number (TIN) would be necessary for any non-child dependent, which could consist Social Security number or an individual taxpayer identification number (ITIN).

See Kelly Phillips Erb, Congress Pushes Forward this Week with Tax Reform 2.0, Forbes, September 12, 2018.

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