Second Round of Tax Cuts Possible

Second Round of Tax Cuts?  On June 19th, House Republicans unveiled a budget plan that would permit lawmakers to use the reconciliation process to reduce the federal deficit while implementing a second tax cut.  Using the reconciliation process, the bill would require only a simple majority in the Senate for passage instead of the usual 60-vote threshold.

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Under this budget plan, in addition to tax cuts, the House Ways and Means Committee would be directed to reduce the federal deficit and have the authority to create legislation that would repeal the Affordable Care Act.

House Ways and Means Chairman Kevin Brady (R-Texas) has indicated the tax cuts in this budget plan would mostly be directed at making permanent the reduced individual tax rates enacted in the recently enacted Tax Cuts and Jobs Act (TCJA), and possibly other TCJA provisions which are set to expire in 2025.  Brady expects to have an outline of the legislation before August.  But at this time it is unclear if the budget proposal will make it to the House floor for an up and down vote.

If you have any questions about federal or state income tax matters, please contact us at 937-223-1130 or Jsenney@pselaw.com.

AUTHOR: Jeff Senney
jsenney@pselaw.com