The House Ways and Means Committee completed its second day of marking up the "Tax Cuts and Jobs Act" on November 7, 2017, without adopting any new changes to the bill. Several Democratic amendments intended to retain provisions that would be cut under the bill, or otherwise make changes, were defeated along party lines.

The markup will continue at 9 a.m. on Wednesday, November 8, and Chairman Kevin Brady (R-TX) said that session could be lengthy as the Committee moves to complete consideration on Thursday.

Rep. Earl Blumenauer's (D-OR) amendment to "automatically suspend these tax cuts if deficits continue to increase" after two years, was defeated on a 16-23 vote. Ranking Member Richard Neal (D-MA) said the amendment would provide a safety valve if economic growth promised by Republicans does not materialize.

An amendment by Rep. Bill Pascrell (D-NJ) to restore the state and local tax deduction was defeated on a 16-23 vote. Under the amendment, the corporate tax rate would be increased as necessary to offset the cost. The underlying House bill would repeal the deductibility of state and local income and sales tax, and cap the property tax deduction at $10,000.

Rep. Ron Kind's (D-WI) amendment to repeal the state and local tax deduction for all business organizations was defeated on a 15-23 vote.

Kind's amendment to retain the Work Opportunity Tax Credit (WOTC) was defeated on a 16-23 vote.

An amendment by Rep. Linda Sanchez (D-CA) to provide a $3,600 credit for families with young children, index the credit for inflation, eliminate the $3,000 earnings threshold for the refundable portion of the credit, and make permanent the $300 "family flexibility" credit was defeated on a 16-23 vote.

An amendment by Rep. Danny K. Davis (D-IL) to retain the adoption tax credit (with refundability), the exclusion for employer-related dependent care, and the exclusion for employer-related adoption assistance programs, as well as modernize the Child and Dependent Care Tax Credit by increasing credit amounts and making them refundable, was defeated on a 16-23 vote.

Rep. Lloyd Doggett's (D-TX) "Stop Outsourcing of American Jobs Amendment" was defeated on a 16-23 vote. A Doggett press release said the amendment would "require that multinational corporations looking to invest offshore pay the same tax rate as small businesses or domestic companies investing here in America."

In urging rejection of the amendment, Chairman Brady acknowledged that US jobs, research, and headquarters have been moving overseas and that lawmakers have unsuccessfully tried to treat the symptoms of that problem. He said the Tax Cuts and Jobs Act treats the real problem through lower rates, expensing, and a territorial system. Chairman Brady said he agrees with Rep. Doggett that safeguards are necessary, and are included in the underlying bill and in the amendment approved yesterday through provisions intended to "ensure that we stop the incentives to export profits, and earnings, and intangibles overseas."

Rep. Terri Sewell's (D-AL) amendment to establish a business-related 50% tax credit on the first $2,000 paid to an apprentice, and 40% credit on the first $6,000 paid to a worker who has completed an apprenticeship was defeated on a 16-23 vote.

Amendments are attached.

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ATTACHMENTS

Blumenauer Amendment

Davis Amendment

Doggett Amendment

Kind Amendment

Kind SALT

Pascrell Amendment

Sanchez Amendment

Sewell Amendment