On Monday, Sept. 10, House Ways & Means Committee Chair Kevin Brady (R-TX) introduced a three bill follow-up to the Tax Cuts and Jobs Act. These bills constitute Republicans’ Tax Reform 2.0 package and primarily lock in individual and small business tax cuts made in the legislation passed in December 2017, and reform savings- and education-related tax provisions. The measures as introduced do not make any enhancements or changes to the LIHTC, Historic Rehabilitation Tax Credit or New Markets Tax Credit. A markup was scheduled for September 13 and the measures were approved by the House Ways & Means Committee on a party-line vote. Speaking to reporters after the markup, Brady declined to predict whether the bills would go to the House floor. “We have it ready for them, and in our conference I see strong support for permanency, savings, and innovation,” he said. “We’re hopeful that the Senate can pick the various bills up as they see the 60-vote support.” The legislative package was adopted by the House of Representatives on September 28 by a largely party-line 220-191 vote. Democrats have indicated that the measures would be “dead-on-arrival in the Senate.”
The following bills were introduced as part of this Tax Reform 2.0 package:
H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, sponsored by Rep. Rodney Davis (R-IL), and cosponsored by Rep. Mark Meadows (R-NC), Rep. Mark Walker (R-NC), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans. This measure further modifies tax rates, impacts deductions for pass-thru entities, amends a number of family and individual focused tax breaks, removes or amends a number of deductions, increases the estate tax and gift tax exemption and increases the exemption for AMT for individuals.
H.R. 6757, the Family Savings Act of 2018, sponsored by Rep. Mike Kelly (R-PA), and cosponsored by Rep. Paul Mitchell (R-MI), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans. This bill amends various provisions related to retirement and educational savings.
H.R. 6756, the American Innovation Act of 2018, sponsored by Tax Policy Subcommittee Chairman Vern Buchanan (R-FL), and cosponsored by House Ways and Means Committee Chairman Kevin Brady (R-TX) and all other Ways and Means Committee Republicans. The measure creates incentives primarily oriented for start-up businesses.
According to the Joint Committee on Taxation estimates, the three measures would cost $657.3 billion over the next 10 years.