A plan for the “phase two” tax reform could be revealed by House GOP tax writers by August. Republicans have increased their tax meetings related to the effort, House Ways and Means Committee Chairman Kevin Brady, R-Tex., told reporters on June 13.

Tax Reform “2.0” Timeline
The precise timing of a “phase two” tax reform bill or discussion draft release remains “to-be-determined,” a House Ways and Means Committee spokesperson told Wolters Kluwer on June 14. However, Brady told reporters he expects to see a legislative package outlined before the House’s August recess.

Previously, White House Legislative Affairs Director Marc Short predicted a late-summer release of the House’s tax bill. Further, House Majority Leader Kevin McCarthy, R-Calif., has predicted that the House will approve the measure before midterm elections in November.

Individual Tax Cuts
Brady reiterated to reporters that “phase two” will focus on the individual side of the tax code. Moreover, making permanent the individual tax cuts enacted under the Tax Cuts and Jobs Act (TCJA)
( P.L. 115-97) will be the “centerpiece” of a ” phase two” bill, Brady reportedly said. Additionally, Republican tax writers are considering proposals that would streamline the retirement savings process, a Ways and Means spokesperson previously told Wolters Kluwer.

Phase Two Fate Uncertain
The next major tax bill’s fate in the Senate remains uncertain. At least nine Democratic votes are needed to reach the Senate’s 60-vote threshold. Brady said he is hopeful for Democratic support.

However, Democratic lawmakers in the House and Senate remain largely opposed to the TCJA. Democrats have criticized the TCJA for primarily benefiting corporations. However, House Republicans are hopeful for bipartisan support on a new measure that focuses primarily on individual tax cuts.

MCB Tax Advisors are following this closely. If you have questions about the Phase Two Tax Reform, contact an MCB Tax Professional at 703-218-3600.

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