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June 27, 2018
2018-1307

Chairman Brady sees tax reform 2.0 as multiple bills

During a Washington Post event on June 26, 2018, House Ways and Means Committee Chairman Kevin Brady (R-TX) said he does not see tax reform 2.0 as one bill. Rather, it will be a package of "two, three, or four approaches," with permanency of temporary individual and small business provisions under the Tax Cuts and Jobs Act being one of them.

He then said "this tax code is huge" and mentioned that there are retirement savings proposals that were not addressed under tax reform; the proposals were further along in the House, and have since been developed in the Senate. "We think the timing is right to help families save more and earlier in their life, whether it's for health care, or school for their kids, or retirement for [the] long term," Chairman Brady said.

Brady said the House is aiming to send the best tax reform 2.0 package possible to the Senate, where Majority Leader Mitch McConnell (R-KY) and other Republicans will choose those areas they have the most interest in. Senators will be interested in what can get 60 votes for passage because Republicans will not have budget reconciliation instructions to allow a bill to pass with a simple majority vote, he said.

On timing, Chairman Brady said he expects Ways and Means Committee Republicans to begin circulating a draft to House Republicans after the July 4 recess, then listening to concerns about what members want to see in the bill and incorporating changes into a legislative outline to be released in early August, with votes in the fall, depending on when leadership wants to schedule them.

The Chairman said tax reform 2.0 is about changing the culture of waiting 30 years in between tax reform bills and allowing the tax code to get "junked up with a bunch of special interest provisions." The new culture is to continuously improve the tax code every year, he said.

Senator McConnell said in April that if Democrats are supportive of making the individual TCJA tax cuts permanent, "that's something we ought to take a look at. I don't know why we wouldn't want to do that." However, there has been no indication of how the Senate will proceed with such legislation.

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