House Republicans unveiled a new tax package that would make the individual tax rate cuts permanent.
House Republicans unveiled the broad outlines of a new tax package Tuesday that would make individual rate cuts permanent under the nation’s revised tax code, instead of allowing them to expire in 2025.
The proposal stands little chance in the Senate. Nonetheless House Republicans intend to bring it to a vote ahead of the November midterm elections, with the aim of refocusing attention on what they say are positive impacts from a new tax law that has not proven particularly popular with voters.
Some also hope that the vote will put Democrats on the spot, by forcing them to vote for or against extending tax cuts for individuals after months of railing against the tax law as a giveaway for corporations. The massive corporate tax cuts in the $1.5 trillion deficit-busting law were permanent to begin with.
Here is the package
The legislation would come in three different packages. One would make the individual and small-business tax cuts in the original bill permanent. The second would promote retirement savings through a variety of means, including creation of a new “universal savings account” to offer a flexible option for families. And the third would aim to spur business innovation, including by allowing start-ups to write off more of their initial costs.
The total cost of the new package is not yet known, Brady said. But he said that the cost of making the individual tax cuts permanent would be around $600 billion.
Like the original tax law, the new cuts would not be paid for and instead would add to the deficit. Brady said that economic growth produced by the new cuts would “offset some but not all the cost.”