House GOP’s second phase of tax reform aims to make individual cuts permanent, boost retirement savings

FAN Editor

The second stage of House Republicans’ tax reform plan will aim to make individual cuts passed last year permanent and ease rules around retirement savings, according to details shared with CNBC on Thursday.

Earlier Wednesday, House Speaker Paul Ryan said he hopes to hold a floor vote on the plan later this month. The House has a busy month ahead of it, as Congress tries to pass a spending bill by the end of September to avert a government shutdown.

The plan comes out two months ahead of November’s midterm elections, where Republicans are trying to prevent Democrats from winning a House majority largely by arguing their policies have boosted economic growth. The GOP tax plan passed last year, which made steep, permanent cuts to the corporate tax rate, has not caught on with the public the way the party had hoped.

Under the plan passed last year, tax changes on the individual side including rate reductions and a doubled child tax credit were set to expire in 2025. The new proposal would lock in those provisions, as well as one of the most controversial parts of last year’s bill. It would make permanent the $10,000 cap on state and local tax deductions, which prompted a dozen House Republicans in high-tax blue states to oppose the plan.

It would include provisions designed to make entrepreneurship easier, including one that would allow businesses to write off more of their start-up costs. It would also aim to encourage savings by reducing barriers to employers providing retirement plans.

The House GOP argues its new tax proposals will help to boost economic growth and aid small businesses.

This story is developing. Please check back for updates.

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