House Ways Ways and Means Chairman Kevin Brady (R-TX) announced that he would begin to lay the groundwork for a new round of legislation to provide additional tax relief, building on tax reform enacted last year.
Dubbed “tax reform 2.0,” Brady said he expects the effort to consist of multiple bills, with the centerpiece focusing on making the 2017 tax law’s cuts for individuals permanent rather than expiring after 2025. Other parts of the package may focus on encouraging retirement savings and business innovation.
The effort proposes changes to retirement savings accounts, including creating a new universal savings account and allowing families to access retirement accounts without penalties when welcoming a new child. The framework also expands the uses for money in 529 education accounts and would create special tax breaks for startups.
Brady said he hoped to vote on the package in September.
Even if the legislation passes the House, it is not expected to pass the Senate because Republicans aren’t using the complex budget reconciliation process they used to pass last year’s tax code overhaul, which allowed them to advance the measure with a simple majority.
A different package of tax measures is expected to receive a vote in the House before the midterm elections making technical fixes to last year’s tax code overhaul.