Raising the issue now forces Democrats to take an uncomfortable stance against middle class tax relief. If the individual tax breaks expire at the end of 2025, the bottom 80 percent of Americans would pay higher taxes than they would if the law never passed, according to an analysis by the nonpartisan Tax Policy Center.
Republicans on the Ways and Means Committee described tying the individual tax cut extension to ‘tax day’ as one option they’re working on. It’s not clear what, if any, other measures would be included.
If GOP tax writers choose to include the extension of business provisions such as full and immediate expensing -- which allows companies to fully write off their capital expenditures right away -- it could be a sign that Republicans are more serious about the effort, according to one tax analyst briefed on the GOP plans who asked not to be named because the discussions are private.
Middle Class
There are perils for Republicans in re-litigating the tax overhaul: It reminds voters that the GOP made the unpopular corporate tax cuts permanent and the popular middle-class breaks temporary. A second round that only consisted of making the individual breaks permanent would also force the self-styled party of fiscal responsibility to make the case for blowing out the deficit beyond the $1.5 trillion the current tax law adds in the first decade.
Still, Davis said that taxes would be a better conversation for Republicans to have than the chaos and legal woes surrounding the White House that have dominated the political conversation this year.
Some GOP operatives see the tax law as their only significant legislative achievement and therefore make-or-break for the party’s electoral hopes.
“The central question for November is: Does the middle think we cut their taxes? If the answer to that is yes, Republicans will keep the House,” said Corry Bliss, who runs the GOP-aligned super PAC Congressional Leadership Fund. And if the answer is no, “voters will punish Republicans,” he said.
“This bill will not sell itself,” Bliss said. “It’s gaining in popularity, but the work has just begun.”
‘Cheap Exercise’