On Sept. 11, Chairman of the Committee on Ways and Means, Kevin Brady (R-Texas), released details on a package of bills that he has collectively referred to as “Tax Reform 2.0.” The centerpiece of Tax Reform 2.0 is the Protecting Family and Small Business Tax Cuts Act of 2018, which would make the temporary provisions of the Tax Cuts and Jobs Act (the Republican tax reform plan passed at the end of 2017) permanent. Because of budgetary reasons, a number of tax provisions affecting individuals and businesses, including the new 20 percent deduction for pass-through businesses, are scheduled to expire at the end of 2025.
AGC sent members of the committee a letter of support, noting the importance of making the new 20 percent pass-through deduction, lower individual rates, and the increased estate tax exemption permanent. Additionally, AGC co-signed a Parity for Main Street Employers letter noting the importance of the new 20 percent deduction.
After Ways and Means consideration of the legislation, it is expected that the House of Representative will take up the bills the final week of September. While it is unlikely that the Senate will vote on the legislation before the elections in November, it is possible that there may be action in the lame duck session of Congress before the end of the year.
For more information, contact Matthew Turkstra at matt.turkstra@agc.org or (202) 547-4733.