As expected, the House last week passed all three bills in the GOP’s Tax Reform 2.0 package – just before members departed for their month-plus-long recess. Here’s how the votes went down.
Protecting Family and Small Business Tax Cuts Act (H.R. 6760)
- This bill would make permanent the individual and small business tax cuts enacted in 2017. The Joint Committee on Taxation (JCT) estimates that the measure would reduce federal revenue by about $631 billion.
- House passed the measure by a 220-191 vote.
- 10 Republicans voted against it, and 3 Democrats voted for it.
- Vote breakdown here.
Family Savings Act (H.R. 6757)
- This bill would make it easier for individuals to save for retirement, education, and other family expenses. For example, the bill would create Universal Savings Accounts, expand 529 plans, and allow for penalty-free withdrawals from retirement plans for expenses related to the birth or adoption of a child. The JCT estimates that the measure would reduce federal revenue by about $21 billion.
- House passed the measure by a 240-177 vote.
- 10 Democrats voted for the measure.
- Vote breakdown here.
American Innovation Act (H.R. 6756)
- This bill contains provisions to spur entrepreneurship and lower barriers for start-ups. The JCT estimates that the measure would reduce federal revenue by about $5.4 billion.
- House passed the measure by a 260-156 vote.
- 31 Democrats voted for the measure.
- Vote breakdown here.
Next Steps. Consistent with my earlier assessment of Tax Reform 2.0’s prospects, the Senate will not take up the package before the November midterm elections. The retirement and savings piece (H.R. 6757) could see some action in the Senate in the lame-duck session. For more insights into Tax Reform 2.0, check out my previous articles on the topic below:
- Retirement Provisions May Survive Doomed Tax Reform 2.0 – Aug. 13, 2018
- GOP Tax Law Guides Dems to Future Offsets – Sept. 21, 2018.