House GOP Introduces New Tax Cut Bill Ahead of Midterm Elections

Earlier this week, Republican lawmakers of the House introduced legislation that would make the 2017 tax cuts for individuals permanent. Polls consistently show less than half of Americans approve of the tax cut, but members of the Grand Old Party want to highlight it as their largest economic triumph before the November midterm elections.

House Ways and Means Chairman Kevin Brady said in a statement, “This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world.”

Last year’s tax overhaul set the individual changes to expire at the end of 2025 for budget reasons because it passed through a special process where a simple majority was necessary for passage. One of the many provisions was the SALT deduction cap, which is unpopular in high-tax states such as New York and New Jersey. Republicans elected from those high-tax states are now faced with a difficult choice of either supporting a new cap on state and local tax deductions, or voting against tax cuts backed by their party.

The bill includes several retirement-related provisions that would allow small businesses to more easily offer 401(k) plans, as well as new individual savings accounts for education and newborns. The legislation would also allow startups to write off more of their costs.

See Laura Davison & Allyson Versprille, House GOP Introduces New Tax Cut Bill Ahead of Midterm Elections, Time, September 10, 2018.

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