Republicans in the House of Representatives unveiled the plan for the second round of tax cuts on Tuesday, the core of which would make tax cuts for individuals permanent.
Days before lawmakers head home for five weeks of summer campaigning before the Nov. 6 congressional elections, House Ways and Means Committee Chairman Kevin Brady rolled out the “Tax Reform 2.0” proposal that would also expand savings opportunities for families and workers while expanding write-offs for start-up businesses.
“This is an excellent first step,” Brady, a Republican, told reporters after showing the plan to members of his party.
House Republicans plan three pieces of legislation covering permanence, savings, and business in hopes of reaping success in the Senate. Other ideas, including a measure to protect capital gains on business investments from inflation, are also under discussion.
Brady expects his committee to vote on legislation in September, setting the stage for a House floor vote.
The new tax legislation would need support from Democrats to succeed in the Senate. Democrats unanimously opposed last year’s tax-cut bill, citing the lack of permanence for the individual tax cuts.
Republicans hope new legislation could appeal to voters while helping focus the congressional election campaign on buoyant economic growth.
“Voters like tax cuts. I don’t know of too many people who say: ‘Raise my taxes.’ It’s what the people want. They want to keep their money,” said Representative Scott DesJarlais.
The proposal would also create “fully flexible” Universal Savings Accounts for families, allow education savings to be spent on apprentice fees, and give new parents penalty-free access to retirement accounts for child expenses.
It also calls for allowing start-up companies to write off more of their initial costs as a way to foster innovation and productivity.
Reuters contributed to this report