While the July 4, 2025, enactment of the new tax law known as the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21) may still be visible in the rearview mirror, lawmakers on Capitol Hill are already moving forward on other tax-related priorities, including OBBBA follow-up tax legislation. House Speaker Mike Johnson (R-LA) has said he aims to again use budget reconciliation as the legislative vehicle to enact another, though perhaps smaller, tax bill in the fall after the start of fiscal year 2026 on Oct. 1, 2025.
Capitol Hill
2 Big 2 Beautiful
The thing about tax policy is that it tends to stick around for a while. Once a legislative proposal is introduced, even if it doesn’t initially make it over the finish line, it often resurfaces until it does – or may get repealed even if it did. Tax policy is an ever-evolving space, and there are several particular provisions this year, which didn’t make the final cut in the enacted OBBBA that Republican lawmakers are reportedly discussing revisiting in efforts toward an OBBBA follow-up that congressional staffers are calling “2 Big 2 Beautiful.”
Some of these potentially revived provisions include increasing the now permanent 20% section 199A qualified business income deduction to 23% as well as the controversial section 899 so-called retaliatory tax if talks to exclude U.S. companies from the Organization for Economic Co-operation and Development (OECD) Pillar Two taxes don’t work out as planned. Additionally, there could be OBBBA technical corrections in the next bill as the tax community’s feedback continues rolling in.
SECURE 3.0
Separately, there are also bipartisan, bicameral tax policy priorities for which lawmakers on both sides of the aisle are expressing support, including another round of retirement tax breaks being referred to as “SECURE 3.0,” following the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 (P.L. 116-94) and the second act, pun intended, so-called SECURE 2.0 (P.L. 117-328) in 2020.
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