U.S. Rep. Charles Boustany (R-LA) chaired a hearing on Thursday that explored ideas to improve federal tax code and to provide tax relief to individuals and businesses.
At the start of the hearing, U.S. Rep. Kevin Brady (R-TX), the chairman of the House Ways and Means Committee, said that the hearing demonstrates that lawmakers are serious about considering tax legislation through an open and transparent process.
“The fact that over 30 members are sharing their ideas today is a testament to our new process – and to our return after so many years to regular order,” Brady said.
Boustany, the chairman of the House Ways and Means Subcommittee on Tax Policy, heard testimony from 35 lawmakers about ideas and proposals to improve and simplify federal tax code.
“We are honored to have a number of our esteemed colleagues join us today to present legislation that they have all invested a great deal of time and energy to develop,” Boustany said “As Chairman Brady mentioned, it is encouraging that so many of our fellow members of the House of Representatives have come here today to make a record of their priorities for making improvements to our current tax code.”
U.S. Rep. Lynn Jenkins (R-KS) testified about legislation that she introduced, the 529 and ABLE Account Improvement Act, H.R. 5193, to enhance how 529 college savings plans and ABLE accounts aid individuals in planning for the future.
“Hard working families dream of sending their children to college or want to save money to help their children with special needs,” Jenkins said. “Yet, too often they struggle to deal with these spiraling costs. 529 and ABLE accounts help families save so that they can overcome these challenges. This legislation would open up greater access to these savings accounts, improve the usability of the funds within them and ensure fair treatment of the accounts by the Internal Revenue Service. This is a common sense measure that will aid folks striving to secure greater opportunities and a better life for their children.”
The bill would encourage employers to contribute to 529 college savings plans and ABLE accounts through tax incentives, and would remove penalties for using 529 funds to pay for student loans or contribute to charities. Additionally, the bill would allow tax-free rollovers from 529 plans into ABLE accounts.
“Finally, the legislation would repeal the unnecessary IRS interpretation of the investment direction limitation on these accounts, as well as allow tax-free rollovers from 529 Accounts to ABLE Accounts,” Jenkins said. “I encourage my colleagues to support this legislation. As a mom with a son currently in college, I understand its importance and urgency.”
U.S. Rep. Erik Paulsen (R-MN) testified about his bill, the Craft Beverage Modernization and Tax Reform Act, H.R. 2903. The bill would reduce and simplify excise taxes on craft brewers, distillers, cider makers and winemakers.
“From starting out in garages and basements, we’ve seen Minnesota breweries grow into successful small businesses that create jobs in their communities,” Paulsen said. “This has happened in spite of a tax code that hasn’t kept up with the times and continues to hamper small brewers that are trying to expand their operations.”
The bill would also remove red tape and streamline regulations for the craft beverage industry, which has a $1.3 billion economic impact in Minnesota each year.