“We’re actually going for a phase two, which will help in addition to the middle class, will help companies, and it’s going to be something I think very special,” Trump said at an event in Missouri on Wednesday. The same day, House Ways and Means Committee Chairman Kevin Brady (R-Texas) said he plans to release new proposals “this year.”
It’s unclear what the exact contents or timing of another tax package would be, but lawmakers and administration officials have signaled that it would likely include a permanent extension of the new tax law’s cuts for individuals.
“The tax cuts for families and small businesses were long term, but they weren't permanent. We think that's important for growth and certainty." He also said he wants to make tax changes that encourage people to save for retirement.
The tax law Trump signed in December permanently lowered the corporate tax rate from 35 percent to 21 percent. But most of the changes the law made to the individual tax code, including rate cuts, expire after 2025.
Besides making the individual tax cuts permanent, conservatives also said they would hope a second tax bill would lower capital gains taxes, which people pay when they sell investments. Republicans have long wanted to lower capital gains taxes, but they were largely left untouched in the new tax law.
Policy merits aside, this could make for an interesting midterm twist which is probably the real goal given their performance in special elections to date.