House Speaker Paul Ryan is hoping to pass another tax cut this summer in order to boost Republicans’ standings in the polls leading up to November’s midterm elections.
Originally hailed as a boon for working families, the Tax Cuts & Jobs Act has flopped as a popular tax plan, with more than 80 percent of the benefits going to the top one percent of Americans.
Under this plan, corporate tax rates were reduced from 35 to 21 percent permanently, while individual rate cuts are set to expire at the end of 2025.
House Republicans are reportedly aiming to make all the cuts permanent, a move which they hope will generate more voter enthusiasm for the party. According to a Tax Foundation analysis, a permanent tax cut will cost an additional $1.5 trillion in the decade after 2025. This is in addition to the more than $1 trillion price tag of the temporary cuts.
Even without a permanent extension, the current tax cuts are expected to inflate the federal budget deficit to over $1 trillion, nearly double what it was when President Donald Trump took office.
“Tax certainty is very important for keeping this good economic news going, so obviously we believe that’s necessary for economic growth,” Ryan told reporters Tuesday. “We fully intend to make these things permanent, and that’s something we’ll be acting on this year.”
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