On July 24, 2018, House Republicans released their outline of Tax Reform 2.0. Interestingly, the outline commits to improving the tax code every year and likens the process to upgrading apps on a phone. Three main points are discussed. Making the individual and small business tax cuts of the Tax Cuts & Jobs Act permanent is the main goal. Proposals to help local businesses provide retirement plans to their workers are mentioned, but no specific details are provided. Lastly, Family-Friendly Savings Plans are on the agenda by creating Universal Savings Accounts as a flexible savings tool; expanding 529 accounts to apprenticeship/trade programs, home schooling and paying off student debt; and allowing families to access retirement accounts penalty-free for expenses related to the birth or adoption of a child. Legislative text is expected sometime in September. Sixty votes would be needed in the Senate including those of nine Democratic senators. Stay tuned. Make sure you subscribe to our e-mails to get the latest information.
Nick Spoltore is VP of Tax & Advisory Content for Surgent CPE. Mr. Spoltore is a graduate of the University of Notre Dame and of Delaware Law School. Before joining Surgent, he practiced tax and business law at the firm of Heaney, Kilcoyne in Pennsylvania and also in Delaware.