House Passes ‘Tax Reform 2.0’

At press time, the U.S. House of Representatives is scheduled to vote this week on a package of bills that includes three pieces of legislation—dubbed “tax reform 2.0” by Republicans. The package is expected to pass on a mostly partisan basis in the House.

Perhaps the most important piece of the package for Big “I” members is H.R. 6760, the “Protecting Family and Small Business Tax Cuts Act of 2018,” which would make the individual provisions of last year’s tax reform bill permanent. These provisions are currently scheduled to expire at the end of 2025. The legislation would also make the 20% small business deduction—a provision many Big “I” members are able to use—permanent.

The second piece of the package, H.R. 6757, the “Family Savings Act of 2018,” attempts to make it easier for families to save more and earlier throughout their lives by expanding access to new and existing savings vehicles. For instance, the bill would make it easier for smaller employers to join open multiple employer plans.

The final piece of the package, H.R. 6756, the “American Innovation Act of 2018,” would allow startup businesses to write off more business expenses.

As of now, the U.S. Senate is not expected to take up the legislation before the end of the year.

Wyatt Stewart is Big “I” senior director of federal government affairs.