House GOP Tax Proposal Taking Shape
They are aiming to reduce taxes now that the debt ceiling bill passed
With the debt ceiling resolved, House Republicans are expected to shift their focus to tax legislation aimed at boosting economic growth.
House Ways and Means Committee Chair Jason Smith (R-MO) is working to release tax legislation by mid-June that would extend the business and individual tax provisions in the GOP's signature 2017 Tax Cuts and Jobs Act (TCJA). Tax writers are still working on the package, but the business provisions are likely to include a full restoration of research and development deductions, full bonus depreciation and removing caps on business interest expensing. Smith also wants to extend the individual tax cuts from the TCJA, which Democrats say disproportionately benefit the wealthy.
While Smith's forthcoming tax legislation is likely to encounter opposition in the Democrat-controlled Senate, it could serve as a starting point for negotiations on a bipartisan tax package that could pass in a divided government. Democrats have already made clear they want provisions included that also expand social safety net provisions in the tax code, such as an expansion of the child tax credit.
It is possible that other bipartisan provisions could be included in any negotiated tax package, such as reviving the enhanced universal charitable deduction. Last month, Reps. Blake Moore (R-UT), Danny Davis (D-IL), Michele Steel (R-CA) and Chris Pappas (D-NH) introduced the Charitable Act in the House. The bill would allow all taxpayers, including non-itemizers, to deduct up to one-third of the value of the standard deduction for charitable contributions, which comes to about $4,500 for individuals and about $9,000 for married joint filers. Identical legislation was introduced in the Senate earlier this year.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.