Republicans are talking about phase two tax cuts that make them permanent.
With Larry Kudlow joining the White House as an economic advisor, pushing for phase two tax cuts seems to be on President Trump’s agenda. Phase 2 would primarily make the middle class tax cuts permanant. There seems to be broad Republican support for such a change. It would also make it harder for Congress to raise taxes if Republicans lose the House.
The Hill reports, “GOP pushes for ‘phase two’ of tax cuts.”
Republicans are increasingly talking about “phase two” of tax cuts — including a permanent extension of the new law’s individual tax cuts — in an effort to highlight their signature legislative accomplishment and force Democrats to take tough votes.
While Republicans could struggle to pass another tax bill this year, conservatives said that an effort to cement the new individual rates would be both smart policy and smart politics.
“I am 100 percent behind that and would support it and even help promote it,” said Rep. Mark Walker (R-N.C.), chairman of the conservative Republican Study Committee.
President Trump and some key lawmakers have made comments in recent weeks about pursuing additional tax cuts following the enactment of the GOP’s tax-overhaul bill last year.
“We’re actually going for a phase two, which will help in addition to the middle class, will help companies, and it’s going to be something I think very special,” Trump said at an event in Missouri on Wednesday.
The same day, House Ways and Means Committee Chairman Kevin Brady (R-Texas) said he plans to release new proposals “this year.”
“We are exploring what good new ideas can be brought forward in tax reform,” he said on Fox Business Network’s “Varney & Co.”
It’s unclear what the exact contents or timing of another tax package would be, but lawmakers and administration officials have signaled that it would likely include a permanent extension of the new tax law’s cuts for individuals.
“It will lead with permanence,” Brady told Fox Business Friday. “The tax cuts for families and small businesses were long term, but they weren’t permanent. We think that’s important for growth and certainty.”
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