House GOP tax writers to meet on massive bill next week – Washington Examiner
Next week, House republicans on the tax-writing committee will meet to discuss a important tax legislative bill. Scheduled meetings will take place on Monday and Wednesday, where they will focus on policy objectives related to extending certain provisions of the 2017 Tax Cuts and Jobs Act, often referred to as the Trump tax cuts, and also tax priorities that President Trump promised during his campaign.
The House Ways and Means Committee plans to leverage budget reconciliation, a legislative process that allows passage with a simple majority, to pass this major fiscal overhaul.Representatives involved in the meetings, including members who where not in Congress when the original tax cuts were negotiated, emphasize the importance of getting a draft tax bill ready.The discussions are expected to cover various tax preferences and priorities, including proposed changes to state and local tax deductions and policies affecting Medicaid.
While the Senate is also reviewing the budget resolution that will shape Republican tax priorities, both chambers need to agree on a budget resolution framework before advancing the actual legislation. The House budget includes significant spending cuts and targets for tax cuts. The ultimate goal will be to extend the 2017 tax cuts while incorporating new tax proposals outlined by the white House, all without exceeding deficit limits.
House GOP tax writers to meet on massive bill next week
Republicans on the House tax-writing committee are pushing forward with plans for a massive tax legislative bill and will be meeting to discuss preferences next week.
The House Ways and Means Committee will meet on Monday and Wednesday to plan policy objectives related to extending expiring provisions of the 2017 Tax Cuts and Jobs Act, also known as the Trump tax cuts, and tax priorities promised by President Donald Trump on the campaign trail.
Republicans plan to pass the major fiscal overhaul through budget reconciliation, a legislative process that allows bills to bypass the filibuster and pass with only a simple majority in the Senate.
“We have an obligation and responsibility to get a draft tax bill done, and so we’re going to begin that process on Monday and Wednesday,” Rep. Darin LaHood (R-IL), a member of the Ways and Means Committee, told the Washington Examiner.
A source with knowledge of the plans said members of the committee are going to be discussing their tax preferences based on discussions among the group that have been occurring for months and even years. The gatherings are part of a concerted effort to determine the path forward for reconciliation.
Rep. David Schweikert (R-AZ), a member of the committee, described the meeting as “just doing our job.” He said the meeting will be closed-door, meaning the press won’t be in the room, although there will be staff present.
The congressman also pointed out that it has been years since the tax cuts were passed. The majority of Ways and Means Committee members were not even in Congress when the tax cuts were negotiated the first time around. For more than a dozen members of the committee, this is the first time they have attempted to write a major tax bill.
“You also have the reality that there’s very few in the room that were around last time we did this,” Schweikert told the Washington Examiner.
Rep. Mike Kelly (R-PA), chairman of the Subcommittee on Tax, said plans for meetings such as this harken back to 2017 when former Rep. Kevin Brady (R-TX) was in charge of the Ways and Means Committee, and there would be many meetings just going over the details of the tax legislation.
When asked about the meeting, Rep. Nick LaLota (R-NY) said he just wants to ensure that the tax discussions include a “much higher” cap on state and local tax deductions (the current cap is $10,000) and ensure no deep cuts to Medicaid, among other things.
“I want to see anything that comes out of the House and Senate to conform to those and other priorities,” he said.
However, the planned Ways and Means meetings come as the Senate considers how much it wants to change the budget resolution and reconciliation — changes that could shape how Republican tax priorities are included in reconciliation.
In order to begin crafting the actual reconciliation legislation, both chambers need to agree on a budget resolution framework.
As passed by the House, the budget resolution includes a $1.5 trillion floor for spending cuts, with a target of $2 trillion in spending cuts, and would allocate $4.5 trillion in net tax cuts for the Ways and Means Committee.
Now that the House passed its budget, the Senate will have a turn to rework the House resolution. However, the big question is how much the Senate will end up changing. If top-line numbers, such as the $4.5 trillion for tax cuts, are changed, that would affect which tax provisions can be included.
“I think you can walk and chew gum at the same time,” LaHood said of the Ways and Means Committee starting the tax planning meetings next week without a budget resolution already being approved by both chambers. “And so I don’t see any reason why we wouldn’t be able to begin the process.”
Senate Majority Leader John Thune (R-SD) indicated this week that the upper chamber will likely not bring an updated version of the House budget resolution to the floor for a vote until at least the latter part of March.
After both chambers approve the budget resolution, the real policy work begins. Namely, which tax provisions will be extended, will they be made permanent — and if not, for how long — and what new tax policy will be included?
The biggest chunk of reconciliation will be extending the 2017 tax cuts, but Trump proposed several new and major tax changes while campaigning. The Ways and Means Committee will have to attempt to include the White House’s tax priorities without breaching the deficit cap.
The extra priorities the White House has outlined include eliminating taxes on tips, ending taxes on Social Security, eliminating taxes on overtime pay, adjusting the cap on state and local tax deductions, and introducing tax cuts for made-in-America products.
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