The US House Budget Committee has approved a legislative tool Republicans might use for the next phase of federal tax reform. On June 21, a fiscal year (FY) 2019 budget resolution passed the budget committee by a 21-to-13 party line vote.
If approved by both chambers, the budget resolution would allow congressional Republicans to approve the next phase of tax reforms without Democratic support with a plain GOP majority. This is similar to the way the first federal tax reform legislation, Tax Cuts and Jobs Act (TCJA), was pushed forward.
Tax Reform Part Two
Kevin Brady, R-Tex., Chairman of the House Ways and Means Committee has said broad outline of the next phase of tax cuts might be available by August. House Majority Leader Kevin McCarthy, R-Calif., has predicted that the House will approve the measure before 2018 midterm elections in November.
The resolution, titled A Brighter American Future, calls for extending various “pro-growth” provisions of the TCJA.
Chairman Brady stated that the next phase of tax reform will focus on the individuals by making permanent existing tax cuts. Also, the new bill would make permanent the 20% deduction. Currently, many of these would expire in 2025 because of Senate rules.
Congressional Democrats were united in their opposition of Republication tax reform efforts. Democrat Steny Hoyer, D-Md., said the TCJA would explode the deficit and Senator Chuck Schumer, D-N.Y., tweeted, “Six months ago, in the dead of the night, the GOP jammed through the [TCJA] lavishing tax cuts on big corporations and the wealthiest few.”