Rep. Vern Buchanan, R-Fla., has introduced the TCJA Permanency Act, H.R. 8913, legislation to make permanent tax cuts for individuals and small businesses originally enacted as part of the Tax Cuts and Jobs Act (TCJA) of 2017, including expanding the use of 529 plans.
Without congressional action, 23 different provisions of the sweeping tax overhaul are set to expire after 2025, Buchanan said.
"With Americans continuing to suffer under the weight of record-high inflation and an uncertain economic future, we need to provide some much-needed relief and certainty to hardworking families and ensure these tax cuts do not expire," Buchanan said in a statement.
Among the tax provisions the bill would make permanent:
- The revised tax brackets, which reduced tax rates for most Americans.
- The 20% deduction for qualified business income.
- The higher standard deduction. The Tax Cuts and Jobs Act increased the standard deduction from $6,500 to $12,000 for individual filers, from $13,000 to $24,000 for joint returns, and from $9,550 to $18,000 for heads of household in 2018. As before, the amounts are indexed annually for inflation.
- The doubled child tax credit.
Buchanan said his legislation also includes a number of important updates to a previous iteration of this bill, including several technical fixes and expanded eligible uses of 529 savings plans.
It was not immediately clear whether the bill would permanently extend all 23 of the expiring tax provisions. For example, an expansion of the estate and gift tax exemptions is also set to expire in 2025. A full copy of the bill was not available.
