Tax Reform 2.0 was unveiled Monday evening, Sept 10th, and includes three bills which build upon and make permanent changes made by the Tax Cuts and Jobs Act. The first bill, the Protecting Family and Small Business Tax Cuts Act of 2018 makes TCJA tax rates permanent, along with key deductions and the new Sec. 199A 20% Pass-Through Deduction.
The second bill in the Tax Reform 2.0 package is the Family Saving Act of 2018. This focuses on reforms to retirement plans and creates small universal savings accounts which allow tax free withdrawals and $2,500 annual contributions.
The third bill in Tax Reform 2.0 is the American Innovation Act of 2018, which allows businesses to deduct the lesser of their start-up costs or a $20,000 “start-up standard deduction.” Certain limitations would apply and expenses not deducted immediately would be amortized over 180 months.