Less than four months after the dust settled on Trump's tax reform, the Republican tax reform plan's 'second phase' is on the way.
1, The second phase of tax reform is expected to be announced by April 15!
Mark Meadows, a Republican congressman, stated to CNBC on Monday that the proposal for the second phase of the Republican tax reform plan could be announced as early as April 15.
Meadows, who is the chairman of the extreme conservative "Freedom Caucus" within the Republican Party, indicated that the second phase of tax reform is likely to propose making individual tax cuts permanent or considering inflation factors when calculating capital gains.
Earlier that day, House Ways and Means Committee Chairman Kevin Brady did not commit to a specific date for announcing further tax reform proposals, but he expressed hope to complete the plan within this year.
CNBC reported that Congressman Rodney Davis has introduced a bill in the House to make individual income tax cuts permanent. Texas Republican Senator Ted Cruz has also introduced similar legislation in the Senate.
Newly appointed Director of the White House National Economic Council, Larry Kudlow, predicted in an interview with CNBC last week:
● Making individual tax cuts permanent is likely to be a core task of the second phase of tax reform.
● The capital gains tax rate may be lowered, for example, it could be designed to adjust in line with inflation indexing.
2, The second phase of tax reform may pave the way for elections
In December of last year, Trump signed a $1.5 trillion tax reform bill at the White House, marking the largest tax cut in the United States in thirty years.
The bill reduced the corporate tax rate from 35% to 21%, but most provisions of the individual tax law, including tax cuts, were classified as temporary, effective until December 31, 2025.
Last year, not a single Democratic congressman supported the tax reform bill during the vote. Some Republicans believe that many Democratic congressmen are dissatisfied that last year's tax reform only made individual tax cuts temporary rather than permanent, thus the new tax reform bill may also gain support from Democrats.
Furthermore, analysts believe that this year the Republicans will introduce more tax reform measures aimed at leveraging the tax reform plan to gain voter support in the elections in December.
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