WASHINGTON – With midterm elections looming on the horizon, House Republicans have introduced a package of bills that would, among other things, make their individual tax cuts permanent.
Under last year's $1.5 trillion tax cut, the corporate tax rate was permanently lowered from 35 percent to 21 percent. Individual tax rates, however, were scheduled to expire at the end of 2025.
The law was written that way to accommodate budget rules so it could pass with just a simple majority since no Democrats supported it.
The new legislation would lock in tax cuts for both individuals and small businesses.
"Last year, we said goodbye to America's old, broken tax code," House Ways and Means Committee Chairman Kevin Brady (R-TX) said while introducing the new bill.
"Under our new system, we're seeing incredible job growth, bigger paychecks, and a tax code that works on behalf of families and American businesses," he said.
In addition to individual tax cuts, the legislation would also make other provisions permanent, like the increased standard deductions, rates for pass-through income, child tax credit, and caps on state and local tax deductions.
The three-bill package also deals with expanding retirement savings accounts.
Still, WSB Radio reports that Democrats are less than pleased with the legislation, noting that no cost estimates were released with the package.
"With version 2.0 of the GOP tax scam for the rich, Republicans want to add even more to the deficit, and even more to the bank accounts of the wealthiest 1 percent," House Minority Leader Nancy Pelosi (D-CA) charged.
Brady, however, insists the legislation is a way of providing certainty for the American people.
"It's time to change the culture in Washington where we only do tax reform once a generation," the Texas lawmaker said. "This legislation is our commitment to the American worker to ensure our tax code remains the most competitive in the world."
House Republicans could start working on the new measure this week, and it could get a vote on the House floor by the end of the month.
However, the measure has very little chance of passing the Senate before this fall's midterm elections.