The dust has not yet settled from the Tax Cuts and Jobs Act (TCJA), passed into law in December 2017, and the House Ways and Means Committee is already considering another round of tax changes. The committee chair, Kevin Brady, Republican from Texas, wants to include input from stakeholders such as business groups, think tanks and other relevant organizations. Historically, major tax reforms have been decades apart, so the committee chair is looking for another approach to the way Washington deals with tax policy.
As with all tax legislation, it begins with talking points. From what we can gather, it appears the focus of Tax Reform 2.0 will include:
- Making the first round of individual and pass-through business deductions permanent.
- Focusing on retirement savings and creating a flexible universal savings account so individuals are accustomed to saving for retirement earlier in life.
- Making it easier for small businesses to participate in multi-employer retirement plans.
- Looking for ways to help the Treasury implement the TCJA.
- Providing new business start-ups with greater expensing options for start-up costs.
- Identifying technical corrections needed for the TCJA.
Commentators believe that making the selected TCJA changes permanent will be a tough sell in Congress at this time, as there is little to no support from the Democratic side of the aisle. However, the retirement savings ideas will probably have a favorable reception and have a good chance of passing.
Stay tuned for further developments. If you have questions, please contact the experts at Henssler Financial: