Ways and Means Chairman Releases Broad Framework for Tax Legislation Following Up on 2017’s Reforms
Earlier today, House Ways and Means Chairman Kevin Brady (R-TX) released a framework outlining key goals for tax legislation he intends to introduce this Fall as a follow up to the tax reform legislation enacted in December, 2017. The bill, commonly referred to as “Tax Reform 2.0,” would make permanent individual and small business tax rates enacted on a temporary basis in the 2017 bill, encourage retirement and other types of savings vehicles, and provide tax write-offs to start-up businesses.
The framework does not provide details on potential offsets, if there should be any. NCSHA will closely monitor any proposals for revenue-raisers for any changes that could impact housing programs. The House-passed version of the 2017 tax bill would have eliminated Private Activity Bonds, including Housing Bonds, in order to raise revenue to help offset the cost of tax changes in that bill. While the proposal ultimately was not successful, NCSHA will continue to advocate against any a similar effort this year.
Ultimately, it is unlikely that Congress would pass Tax Reform 2.0 legislation, as the bill would require 60 votes in the Senate, which it is unlikely to achieve. Conversely, the 2017 tax reform legislation required only a simple majority due to budgetary rules enacted to ease its passage.
The framework for Tax Reform 2.0 also notes the Ways and Means Committee’s intention to annually examine the tax code and take action to improve it. Republican Committee members will undertake a series of listening sessions with constituents to gather perspectives on how the tax code should be further modified.