House Tax Leaders Unveil Tax Reform 2.0 Legislation
Yesterday, the House Ways and Means Committee released a package of three bills, which together are the House’s follow-on to last year’s Tax Cuts and Jobs Act. The bills, collectively “Tax Reform 2.0,” would make permanent the tax cuts for individuals and small businesses that were established on a temporary basis in tax reform last year, encourage retirement savings, and support business innovation. The bills do not make any direct changes to affordable housing programs, such as the Low Income Housing Tax Credit or tax-exempt private activity Housing Bonds.
The Ways and Means Committee intends to mark up the package on Thursday. However, we do not know when or if House leadership will bring it to the floor of the House, as the package includes revenue-raisers that would make permanent the limits on state and local tax deductions Congress established on a temporary basis in the 2017 tax reform legislation. Many House Republicans from higher-tax states oppose those limits on deductions. Moreover, the package is unlikely to garner the 60 votes that would be needed for Senate passage, even if it passes the House.