Skip to content Menu

House Ways and Means Chairman Kevin Brady (R-TX) recently released a “House GOP Listening Session Framework,” an outline of the House GOP approach to a second round of tax measures building on the Tax Cuts and Jobs Act (TCJA). 

The “framework” is known as Tax Reform 2.0. According to the two-page document, the goal of Tax Reform 2.0 is to make permanent certain individual and small business tax cuts enacted in the TCJA, promote family savings, and spur new business innovation.

Legislation has yet to be drafted so there are few specifics at this time, but according to the 2.0 framework, lawmakers intend to:

  • Offer enhanced retirement savings.
  • Create a new Universal Savings Account, offering a flexible savings tool for families.
  • Expand Section 529 education savings plans to include tax-free withdrawals to pay for apprenticeships, home schooling, and student loans.
  • Permit families tax-free access to retirement accounts to help pay for costs associated with the birth or adoption of a child.

There is no word yet whether any changes or consolidations of education tax credits will be included.

Republicans also plan to make permanent the TCJA’s $10,000 limitation on the state and local tax deduction and could also include the indexing of capital gains for inflation.

Brady has indicated he will be ready proceed with legislation after Labor Day, but since tax measures would need support from some Democrats in order to pass, it is unlikely that Tax Reform 2.0 will move forward until the lame-duck session of Congress begins, following the elections in November. It is also possible that lawmakers may try to pass legislation making technical corrections to the TCJA during the same time frame.

Contact

Mary Bachinger

Director, Tax Policy

202.861.2581


Related Content

Treasury and IRS Propose Guidance on IRA Prevailing Wage and Apprenticeship Rules

For organizations and institutions interested in claiming bonus amounts of federal tax benefits for clean energy and green building projects under the Inflation Reduction Act, the Treasury Department and the IRS have proposed regulations detailing the requirements, correction processes, and penalties related to the wage and apprenticeship provisions in the act.

IRS Opens Direct Pay Election Tool for Clean Energy Credits

Colleges and universities pursuing a direct pay election for qualifying Inflation Reduction Act credits must register their intent with the IRS.

IRS Reopens Comment Period for 1098-T Reporting Requirements Proposed in 2016

In one of several efforts by the Biden administration to complete long-awaited regulatory projects related to serving students, the IRS is accepting comments on Form 1098-T institutional reporting requirements that were proposed almost eight years ago.