- Republicans want to try for another round of tax cuts.
- Rep. Kevin Brady, an author of the recent GOP tax law, said that Republicans want to pass a bill to make the individual tax cuts permanent.
- Trump also teased another tax cut bill during two separate appearances this week.
- Another tax cut bill is unlikely to pass any time soon.
Republicans may not be done with tax cuts just yet.
Top GOP lawmakers and President Donald Trump have hinted repeatedly over the past few days that a “round two” of tax cuts may be on the way, though the likelihood of a bill passing is slim.
Rep. Kevin Brady, the chair of the House Ways and Means committee and an author of the first Republican tax bill, said during an appearance on Fox Business that Republicans could add a second round of cuts to the legislative agenda.
The Texas Republican said that one of the issues the GOP wants to address is the temporary nature of the individual tax cuts.
Under the new tax law, the cuts for individuals and families expire after 2025 and the tax brackets reset to their previous levels, while the corporate tax cut is permanent. Republicans were forced to make this trade off to ensure that the bill abided by Senate rules that allowed the bill to be passed by a simple majority.
“While the tax cuts for families were long term, they’re not yet permanent, so we’re going to address issues like that,” Brady said.
Trump first hinted at forthcoming legislation during the Houston Astros White House visit on Monday. Brady, who represents a district just outside of Houston, was in attendance and Trump gave the lawmaker a shoutout during a speech.
“Kevin are we going for an additional tax cut, I understand? He’s the king of those tax cuts. Are we going to do a phase two? I’m hearing that,” Trump said.
The president again referenced cuts to come during a Wednesday event touting the first GOP tax law in Missouri.
“We’re actually going for a phase two, which will help – in addition to the middle class – will help companies,” Trump said. “It’s going to be something, I think, very special. Kevin Brady is working on it with me.”
While Brady and Trump may want to push forward with more tax cuts, there may not be an appetite for another cut on Capitol Hill.
For one thing, the new bill would have to garner the support of some Democrats since the GOP wouldn’t be able to use the same procedure that allowed them to pass the new tax law on a party line. Given the upcoming midterms and vehement opposition to the previous bill, getting bipartisan support is dubious.
Republicans also may not be on board given that the first bill will already increase the federal deficit by $US1.5 trillion over the next ten years. While few members of the GOP raised a fuss previously, adding another heap of debt on top would likely scare away a slew of Republicans.
This doesn’t mean Trump and Brady won’t talk up the prospects of another cut, just that a second tax bill will likely stay as just that: talk.
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