As House Republicans unveil a plan to lock in individuals’ tax rate, the Trump administration has touted the positive effects of the initial round of tax cuts, with the latest data showing that July job openings hit a record 6.9 million.
Americans for Tax Reform President Grover Norquist told FOX Business that the new round of tax cuts will allow middle-class Americans to save more tax-free for their day-to-day expenditures and retirement.
“It sets up efforts so your 401(k), your IRA, your health savings account, your education savings account can come together and be more portable, be larger and allow you to save more tax-free,” Norquist said on Tuesday.
The GOP’s “tax reform 2.0" would make permanent the individual tax cuts in the Tax Cuts and Jobs Act of 2017, which President Trump signed into law in December.
Democrats have criticized the new wave of tax cut, suggesting that the proposed changes would primarily benefit the wealthiest taxpayers.
Norquist said the benefits generated from the second round of tax cuts will not only affect the average person, but it will help entrepreneurs who are seeking funds to start a small business.
“There are certain lower taxes for people starting businesses for investing in your small business,” he said.
The small business optimism index has now topped the previous record that was set under President Ronald Reagan with a record high of 108.8 in August, according to the National Federation of Independent Business.
Norquist said the most important aspect of the new tax proposal is that it highlights the importance of having a Republican Congress and White House to ensure the expectations of further tax cuts.
“Every single year you have Republican House, Senate [and] president, there will be a tax cut,” he said.