01/06/2017

House Leaders Form Tax Reform Working Groups

GOP representatives want to introduce a comprehensive tax reform package early in 2017

House Ways and Means Committee Republicans have split into working groups to examine different areas of the tax code in preparation for introducing a comprehensive tax reform package early in this session. Ways and Means Committee Chairman Kevin Brady (R-TX) has yet to decide when to release bill text, but he’s been working to secure support for broad principles of tax reform from rank-and-file members as well as the outside business community.

House Republicans released a tax reform blueprint last summer that calls for a 20 percent corporate tax rate, a 25 percent top rate for pass-throughs (small businesses taxed at individual rates) and a top individual rate of 33 percent. Brady also is trying to decide whether to include a provision on border adjustability, which would tax imports and provide rebates for exports. Brady said he is listening to concerns from retailers, car makers and others who would not be able to deduct the cost of products they bring back into the country.

Brady convened a meeting of Ways and Means Republicans on Dec. 14-15 to settle some of these unresolved issues, and the working groups will further fine-tune specific changes that Republican tax-writers will weave into bill language.

While Brady still wants to put out a bill in the first 100 days, the Senate is expected to move much more deliberately. Given its task of confirming President-Elect Trump’s cabinet nominations, Senate Finance Committee Chairman Orrin Hatch (R-UT) told reporters this week, “We’ll just have to see how we can break through and finally get to the real work of the Senate.”