House Passes Tax Reform 2.0

Washington, September 28, 2018 Contact: Ann Tumolo (202-225-3164)

WASHINGTON, D.C. – Today, the House of Representatives completed passage of Tax Reform 2.0, a collection of bills advanced by the Ways and Means Committee earlier this month. Tax Reform 2.0 is a follow-up to the Tax Cuts and Jobs Act passed last December, and makes permanent individual and small business tax cuts, expands access to personal savings accounts, and further reduces the tax burden on our nation’s start-up businesses. Upon passage, Congressman Wenstrup released the following statement:

“This package of bills is an investment in the long-term health of the economy, in family and retirement savings, and in our innovative future. The House of Representatives is proactively reforming a political culture in Washington that only updates our tax code once in a generation, and I hope the Senate will follow suit. I am hopeful that this is just the beginning of a new, nimble tax policy that is constantly improving for the benefit of all Americans,” said Congressman Brad Wenstrup. 

Congressman Wenstrup also spoke twice on the House floor in support of the bills, which can be viewed here and here.

Highlights in the legislation include:

  • Protecting Family and Small Business Tax Cuts Act of 2018 (H.R. 6760)
    • Makes individual and small business tax rate changes from the Tax Cuts and Jobs Act permanent. Permanently extends various deductions, including the doubled Child Tax Credit and expanded Standard Deduction. Extends the Section 199A deduction – key to reducing the tax burden upon small businesses.
  • Family Savings Act of 2018 (H.R. 6757)
    • Creates new Universal Savings Accounts. Allows small businesses to join together to create 401(k) plans more affordably. Eliminates the age limit on IRA contributions. Expands 529 Education accounts, allowing education savings to be used for apprenticeship fees, home schooling costs, and student debt payments.
  • American Innovation Act of 2018 (H.R. 6756)
    • Allows new businesses to write off more of their initial start-up costs. Allows start-ups to bring in new investors without triggering limits on access to tax benefits like the R&D credit.