The plan aims to provide various benefits to large corporations, small businesses, and average Americans.
GOP House Republicans have proposed a new plan for tax cuts just days after the contentious debt limit debate in Washington
The tax cuts estimated to cost around $240 billion over the next decade, are expected to face opposition from Democrats, who are unlikely to support the proposal to offset the cost by rescinding $216 billion in green energy breaks.
The package includes provisions such as increasing the standard deduction and expanding business research write-offs. The Republicans are looking to strike a year-end tax deal, with Democrats insisting on expanding the Child Tax Credit, which could increase the overall cost. GOP lawmakers argue that their proposed policies will alleviate the burden on working families, support small businesses, create jobs, and protect American innovation and competitiveness.
The plan also seeks to undo restrictions on popular business tax breaks, restore reporting requirements for the Opportunity Zone program, raise the reporting threshold for small businesses, and allow immediate deductions for investment expenses.
It includes tax cuts for individuals, including a temporary expansion of the standard deduction and the renaming of the standard deduction as the “guaranteed deduction.”
The plan aims to offset some of the costs by targeting certain green energy tax credits, including those for electric vehicles. The proposed legislation will be taken up by the Ways and Means Committee in the coming week. While Democrats have criticized the GOP’s focus on tax cuts for businesses, they may have to consider supporting them to secure a larger budget for expanding the child credit.
The GOP plan also includes surprising provisions, such as a 60 percent excise tax on farmland purchases by certain countries and benefits for S corporations. However, it omits a bipartisan proposal to cut taxes for auto dealers affected by the pandemic and accounting rules.