It has only been six months since the enactment of the Tax Cuts and Jobs Act, but another tax reform, also known as tax reform 2.0, could be coming later this summer. However, House Ways and Means Committee Chairman Kevin Brady stated in an interview with The Washington Post that he does not envision another single, all-encompassing tax bill. Instead, tax reform 2.0 would be a package of multiple bills.
In his interview, Brady highlighted a few areas that he expects new or revised tax provisions, including retirement, education, and healthcare. Brady specifically mentioned that the provisions would focus on helping families save more and earlier in their life for healthcare, school, or retirement. Another focal point of tax reform 2.0 would be to make some of the many “sunset” provisions in the Tax Cuts and Jobs Act that are set to expire in 2025 more permanent.
In addition to tax reform 2.0 being multiple bills, Brady explained that the Ways and Means Committee wants a change in the culture of Washington surrounding tax reform. The culture shift would be a move from having 30 years in between significant tax reform to continuously reviewing the tax code yearly to search for ways to improve it. Brady compared this shift to how successful corporations continually evaluate how they can be more competitive and innovative. “I want Congress to look at the tax code every year and ask themselves the same three questions; how do we be more competitive, innovative, better?” Brady stated.
As for a timeline on when tax reform 2.0 might be executed, Brady hopes that a legislative outline will be released in early August with votes in the committee and final passage on the House floor in the fall. If a tax package makes it through the House in the fall, it would still need 60 votes in the Senate to pass.
For more information about this potential new tax reform, please contact Anatoli Pilchtchikov or one of our tax advisors at 301.231.6200.