Latta: Tax Reform 2.0 Will Continue Economic Momentum
Congressman Bob Latta (R-Bowling Green) joined his colleagues in passing three pieces of legislation known as “Tax Reform 2.0” this week to continue economic momentum that was kicked off by the passage of the Tax Cuts and Jobs Act in late 2017. Included in the Tax Reform 2.0 package is legislation to expand tax-free savings opportunities for Americans, tax cut permanency for small businesses and individuals, and policies that will help start-ups write off more of their upfront costs. The small business and individual tax cuts were not made permanent in the Tax Cuts and Jobs Act due to Senate procedural rules. Latta has supported making these provisions permanent.
“Since the passage of the Tax Cuts and Jobs Act, we’ve seen our economy take off,” said Latta. “From record-low unemployment numbers and rising wages to sky-high optimism among small businesses and manufacturers – tax reform is making a real difference in people’s lives. Just this week, the Federal Reserve predicted that we’ll see 3.1% annual growth this year, a number that seemed unobtainable under the previous administration.
“Passing Tax Reform 2.0 will build on this momentum by making the tax relief for small businesses and individuals permanent while also including new policies to help Americans save or start a business. Ohio families are seeing more money in their pockets, American business are growing, and workers are getting jobs – let’s keep the good news going.”
Tax Reform 2.0 consists of:
H.R. 6760 – The Protecting Family and Small Business Tax Cuts Act
Makes permanent provisions from the Tax Cuts and Jobs Act that:
Lower Tax Rates
Double the Child Tax Credit for Families
Double the Exemption for the Death Tax
Provide the First Ever Paid Family Leave Tax Credit
According to the non-partisan Tax Foundation’s analysis, this will create 1.5 million new jobs, increase wages by 0.9% and increased GDP by 2.2%.
H.R. 6757 – The Family Savings Act
Expands ability for individuals and families to use a variety of savings vehicles
Includes reforms to make it easier for employers to provide retirement plans to their employees
Establishes universal savings accounts, which are individual accounts that Americans can use to save for any purpose, in order to encourage families to save earlier and in greater amounts
Further expands the permitted uses of 529 education savings plans
Includes a provision that allows individuals to withdraw funds from their retirement accounts, penalty-free, at the birth or adoption of a child
H.R. 6756 – The American Innovation Act
Doubles the amount of start-up and organizational costs that can be expensed in the first year of operations, among other provisions
The bill will help new and start-up businesses after they have been declining over the previous decades. In 1977, start-up businesses made up 16% of all businesses but by 2015, start-up businesses made up only 8% of all businesses.