New GOP Tax Plan Adds Savings Accounts, Expands 529s

Nicole Kaeding, Tax Foundation's director of special projects, said the tax law "was a pro-growth tax reform that can help create jobs in the United States, raise wages and expand the economy. However, much of the [tax overhaul] is scheduled to expire over the next decade." The new framework "helps provide individuals certainty in their tax code by proposing to make the individual income tax provisions permanent. We project that making the individual income tax provisions permanent would increase the size of the U.S. economy by 2.2% in the long run while reducing federal revenue by $165 billion annually."

The plan would also improve the tax treatment of startup businesses.

"While it's unclear what provisions the House may consider, lawmakers could make the Section 179 deduction more generous or create a standard deduction for startup business costs, among other options," the Tax Foundation said.

Greg Valliere, chief global strategist for Horizon Investments, noted in his Capitol Notes briefing on Tuesday that Brady's tax package "probably won't go anywhere in this polarized Congress."

That being said, the framework "contains an intriguing package of reforms in the Retirement Enhancement and Savings Act, which enjoys bipartisan support," Valliere opined.

Brady "should get his bill out of the House Ways and Means Committee later this summer, and the full House could pass it in September," he said, "but it faces a very high bar in the Senate."