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Under last year's plan, personal tax changes, including rate reductions and the double child tax credit, were to expire in 2025. The new proposal would retain these provisions, as well as one most controversial parts of last year. bill. This would make the $ 10,000 ceiling for national and local tax deductions permanent, prompting a dozen home Republicans in the high-tax blue states to oppose the plan.
It would include provisions to facilitate entrepreneurship, including a provision allowing companies to cancel more of their start-up costs. It would also aim to encourage savings by reducing barriers for employers offering pension plans.
House GOP says its new tax proposals will help boost economic growth and help small businesses. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee, said Thursday at the GOP conference that "the best is yet to come". The party aims to improve the tax code every year in Washington, he told his colleagues.
It also creates another potential problem for the GOP: budget deficits. According to the Bipartite Joint Committee on Taxation, the cost of sustaining individual reductions is estimated at $ 627 billion over ten years.
Since the GOP tax plan was passed last year, Democrats have repeatedly criticized the $ 1 trillion or more project that it should add to deficits over a decade. On Thursday, Brady told the House of Republicans that he was confident that the deficits would be higher if they failed the second round of tax reforms.
Speculation has increased that Republicans might try to index capital gains taxes to inflation as part of their second tax law, but the GOP did not include it. Brady told his colleagues that it would be "incredibly pro growth" and that the party should have a "family discussion" about the opportunity to take it up in a third round of reforms.
Correction: House Speaker Paul Ryan said Thursday that he hopes to vote on the plan later this month. An earlier version misinterpreted the day.
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