House Republicans Roll Out Election-Year Tax Cut Plan
Republicans in the U.S. House of Representatives unveiled an election-year tax plan that is unlikely to become law but could energize party voters this autumn by promising permanent tax cuts for individuals and most business owners, Reuters reported. Days before lawmakers head home for five weeks of summer campaigning before the Nov. 6 congressional elections, House Ways and Means Committee Chairman Kevin Brady (R-Texas) rolled out a “Tax Reform 2.0” proposal that would also expand savings opportunities for families and workers while expanding write-offs for start-up businesses. “This is an excellent first step,” Rep. Brady said. House Republicans plan three pieces of legislation covering permanence, savings and business in hopes of reaping some success in the Senate. Other ideas, including a measure to protect capital gains on business investments from inflation, are also under discussion. Rep. Brady expects his committee to vote on legislation in September, setting the stage for a House floor vote. But new tax legislation is unlikely to succeed in the Senate, where Republicans would need support from Democrats, who opposed last year’s overhaul that permanently slashed corporate taxes but provided only temporary reductions for individuals and business owners. Democrats charged that the tax law largely benefited wealthy Americans and corporations. Some $1.1 trillion of the cuts will expire after 2025, a factor contributing to the overhaul’s unpopularity with voters. Republicans hope new legislation could appeal to voters while helping focus the congressional election campaign on buoyant economic growth.
