Likelihood of Tax Legislation in the House This Year in Doubt

August 3, 2023

The probability of tax legislation being voted on by the US House of Representatives this year is beginning to seem low.

The House Republicans’ tax-cut package, comprising three bills, has been stagnant since June 13, as it lacks Democratic support and the required votes to pass in the House. With the Democratic-controlled Senate, the legislation faces further challenges for progression.

A significant obstacle remains the package’s failure to address the state and local tax deduction (SALT) issue, which has led to opposition from Northeastern Republicans.

Whether the tax-cut package will be brought to the floor before the fall remains uncertain, and the GOP leadership’s commitment to pushing it forward is questionable. Additionally, Democrats plan to utilize the GOP’s tax proposal as a campaign issue in the upcoming House elections. As a result, the chances of significant tax legislation passing this year appear slim.

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