Movement Afoot To Make 2017 U.S. Tax Cuts Permanent

With businesses facing high inflation and labor costs, Republicans on the U.S. House Ways and Means Committee have proposed to make tax relief signed into law in 2017 permanent. As readers will recall, among other things, the Tax Cuts and Jobs Act, or TCJA, reduced the federal corporate tax rate and included an important deduction for pass-through companies. MSCI supported this legislation.

Unfortunately, 23 provisions of TCJA are set to expire at the end of 2025 unless Congress takes action. These include:

• The Section 199A pass-through deduction, which offers parity between corporations and pass-through companies;
• The lower individual rates, including the 37 percent top rate;
• The increased child tax credit;
• The employer credit for paid family leave;
• The Work Opportunity Tax Credit;
• The increased standard deduction; and
• The SALT deduction cap.

In September, the ranking member on the Ways and Means Health Subcommittee, Rep. Vern Buchanan (R-Fla.), introduced the TCJA Permanency Act, a bill that would ensure TCJA provisions do not expire. Specifically, Rep. Buchanan’s bill would:

• Permanently lower tax rates for individuals and families;
• Preserve the 20 percent deduction for small businesses;
• Maintain the higher standard deduction;
• Lock in the doubled child tax credit; and
• Permanently simplify the tax filing process, which would allow nine out of 10 Americans to get the full benefit of tax deductions without itemizing their tax returns.

Read more about that legislation here.