Sketching Out 'Tax Reform 2.0' (Guest: John Tatom)
Research Fellow Jesse Hathaway and John Tatom, president of Thoroughbred Economics, talk about what "tax reform 2.0" should look like when Congress gets to work.
In this episode of the Heartland Daily Podcast, Research Fellow Jesse Hathaway and John Tatom, president of Thoroughbred Economics and Heartland Institute policy advisor talk about what tax reform bills drafted by Congress this fall may look like, and what they should look like.
Congress will soon begin work on making the individual income tax reductions included in the Tax Cuts and Jobs Act (TCJA) permanent, a measure nicknamed "Tax Reform 2.0. President Donald Trump signed TCJA into law on December 22, reducing most individual income tax rates, permanently cutting the corporate income tax from 35 percent to 21 percent, and cutting overall taxes by an estimated $1.5 trillion. However, without congressional action, the individual income tax reductions will expire on December 31, 2025.
Tatom says "tax reform 2.0" will build on what TCJA has already done for many Americans, reducing the cost of doing business in the U.S. and fixing "glitches" in the tax law that were introduced in the first round of tax reform. Hathaway and Tatom discuss what is likely to be included in Congress' second round of reform, as well as what kinds of reforms Congress should consider making when putting pen to paper.