House committee passes new round of tax reforms
Lost amid the noise over the Kavanaugh confirmation hearings was a bit of important news out of the House Ways and Means Committee, which approved a sweeping series of new tax reform bills. The Tax Foundation gives us the highlights of what the measures contain:
The first bill, Protecting Family and Small Business Tax Cuts Act of 2018 (R. 6760), would make permanent the individual provisions of the Tax Cuts and Jobs Act, which we’ve estimated would increase long-run GDP by 2.2 percent and create 1.5 million new full-time equivalent jobs. These changes are estimated to cost $166 billion a year on a static basis and $113 billion on a dynamic basis.
The second bill in the series, the Family Savings Act of 2018 (R. 6757), would make several improvements to the way the tax code treats personal saving. This includes the introduction of a new savings vehicle, called universal savings accounts (USAs), which would in part fix the issue of double taxation of saving, as well as some other improvements to retirement savings.
And the third bill, the American Innovation Act of 2018 (R. 6756), would allow businesses to deduct up to $20,000 of their start-up costs.
That's pretty big news -- and exactly the sort of pro-growth, pro-taxpayer news Republican candidates should be touting on the campaign trail.
You can read a more detailed analysis of the bills here.