Pardon Our Dust
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The U.S. House of Representatives is set to vote on a package of bills under Tax Reform 2.0 this week. In a Sept. 21 Law360 article, McGuireWoods Consulting vice president Lai King Lam breaks down the expected fate of Tax Reform 2.0 and discusses what the Democratic tax agenda might look like should the party gains control of the House in the 116th Congress.
The House is expected to pass Tax Reform 2.0, but no action will be taken on the legislation in the Senate before the midterm elections.
For Tax Reform 2.0, “[i]t’s hard not to view the House committee markup and floor vote with cynicism and dismiss these actions as nothing more than a hollow political messaging exercise,” Lam writes. But such legislative actions deserve attention because they offer valuable policy insights. For instance, Democratic amendments offered during Tax Reform 1.0 and 2.0 signaled the party’s intent to gut parts of the GOP’s tax law and use much of the savings and revenues generated from these changes to pay for the Democratic domestic agenda, which will include infrastructure investment and middle-class tax cuts.
Lam also examines the Democrats’ potential changes to the 2017 tax law, which includes revisiting the corporate and individual tax rate, alternative minimum tax, estate tax and the treatment of carried interest.