It was recently reported that the White House and members of Congress have begun work on yet another piece of tax relief legislation. While policymakers are in the very early stages of solidifying what the specifics might look like, here are the key areas they plan to address:
- Permanence: Many of the provisions from the Tax Cuts and Jobs Act are set to expire within the coming years, but lawmakers are looking to make these changes permanent. That way, businesses can better plan out investments and take advantage of expansion opportunities.
- Reduce Tax Rates Further: The previous tax relief package significantly reduced the tax burden on both individuals and businesses. Lawmakers are looking to lower these rates further to spur even more economic growth and business investment.
- Encourage Savings: According to bankrate.com, a significant portion of Americans lack sufficient savings—an indicator of a potentially volatile economy. Measures being considered in the new tax bill could help boost overall savings and encourage Americans to begin saving earlier in life.
- Strengthen Retirement Programs: With the financial savings from the Tax Cuts and Jobs Act, many employers expanded retirement benefits and increased contributions for their employees. Ensuring that these programs are secure and long-lasting is part of a healthy economy and provisions in a new tax bill could help further that goal.
While the details of a new tax bill are far from fruition, these key areas that lawmakers plan to address will help extend the trend of economic growth and financial prosperity that we currently enjoy. To explore the benefits of the previous tax cuts legislation, visit TaxCutsWork.com.