Leading into November Elections, House Passes Tax Reform 2.0
On Sept. 27 and 28, the U.S. House of Representatives passed three bills (H.R. 6757, H.R. 6756 and H.R. 6760) that comprise the Tax Reform 2.0 package. ABC key voted these three bills and appreciates the important work of the House in moving these bills forward and building on the successes of the Tax Cuts and Jobs Act. These bills now move to the Senate, where their fate will likely be determined after the November elections by whichever party is in control of the Congress in 2019.
While the TCJA’s permanent 21 percent corporate tax rate provides certainty to ABC C corporation members, Tax Reform 2.0 provides much needed certainty and parity for member pass-through businesses. The package would make the 20 percent deduction for qualified pass-through income permanent, lowering tax rates on those businesses. The bills also make permanent the doubling of the estate tax exemption to $11 million, reductions to individual tax rates and changes to various accounting methods to prevent considerable tax hikes for ABC members in the future.
Further, the Tax Reform 2.0 package contains important provisions to simplify and improve retirement benefits and promote savings for hard-working American families. ABC members strive to offer competitive retirement plans for their employees and values financial stability for their workers.