The bill includes several retirement-related provisions that would allow small businesses to more easily offer 401(k) plans, as well as new individual savings accounts for education and newborns. The legislation would also allow startups to write off more of their costs.
Brady’s statement on Monday didn’t say when his committee will review the legislation, although he has previously said the panel would begin work on it Thursday. Democrats will likely use the meeting as an opportunity to highlight what they see as the failings of the new law in an attempt to score political points with their base.
House Speaker Paul Ryan has said the legislation will get a vote on the House floor before the end of the month.
Additional Deficit
The amount the tax cut 2.0 legislation would add to the deficit would likely outweigh any economic growth stemming from the cuts, according to Alan Viard, a resident scholar at the right-leaning think tank American Enterprise Institute.
Much of the economic boost from the 2017 law was tied to the reduction in the corporate rate and other business-focused provisions, he said. The individual and pass-through tax cuts don’t "pack the same economic punch," Viard said.
Brady has previously said that making the individual tax cuts permanent would cost about $600 billion. The nonpartisan Joint Committee on Taxation, which estimates the revenue effect of legislation, hasn’t yet released figures for phase two tax legislation, but is required to do so before the Ways and Means Committee takes up the bill.
“It’s important that Republicans stay on offense when it comes to taxes,” said Ryan Ellis, a Republican tax lobbyist. “That’s why a mix of making old stuff permanent and also pushing new good things is smart.”
This story provided by Bloomberg News.