Trump Tax Reform 2.0 on Fast Track in Congress
Republican lawmakers are looking to act a lot faster than expected to keep the new individual tax cuts from expiring in Y 2025, thus daring Democrats to put up a roadblock during a congressional election year.
Incoming White House economic adviser Larry Kudlow added momentum to the effort by calling this week for a “Phase 2” of the tax cuts to make breaks for individual taxpayers permanent.
The move was 1st suggested by President Donald Trump during a GOP retreat in West Virginia last month, telling with House Ways and Means Chairman Kevin Brady that he wanted to get rates even lower.
But the GOP’s 2nd attempt at tax cuts faces a hurdle, since it would need support from Democrats, who were cut out of the historic revamp that President Trump signed in December.
Passing a new bill before year’s end to make individual cuts permanent is in sight, and by raising the issue now lets Republicans force Democrats to take an uncomfortable stance against middle class tax relief.
“I’d like to see us bring that forward to make those tax cuts permanent,” House Majority Whip Steve Scalise said in a TV interview Thursday. “Ultimately, let’s have a vote on that, every single Democrat voted against cutting taxes, so I’m not sure where they would be on this.”
This GOP push to make the individual breaks permanent now undermine 1 of the Democrats’ Key criticisms of the tax overhaul, that being it benefits corporations (which received a permanent rate cut to 21% from 35%) at the long-term expense of American families. Which it does not.
During a TV interview after the White House announced his appointment, Mr. Kudlow denied that a Phase 2 of the tax overhaul is a political stunt. Though he acknowledged that it is a message that could help Republicans in November when they try to hold both chambers of Congress.
“I understand politics and election years, but these are serious proposals,” Mr. Kudlow said.
Have a terrific St. Patrick’s Day.
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