Republicans are gearing up for a historic opportunity to craft the nation’s first comprehensive tax reform legislation in more than 30 years, after Congress recently approved a fiscal year 2018 budget resolution that clears the way for lawmakers to potentially pass a tax cut plan this year.
Republican leaders who voted in favor of the budget resolution include U.S. Reps. Diane Black (R-TN) and Kevin Brady (R-TX) and U.S. Sens. Orrin Hatch (R-UT), Pat Roberts (R-KS), Richard Burr (R-NC) and Bill Cassidy (R-LA).
Republicans said overhauling the nation’s tax code would create more jobs by spurring economic growth, make the United States more competitive globally and allow more families to keep a greater share of their paychecks.
The House approved the final budget resolution after considering amendments from the Senate on Thursday. The Senate had approved the resolution, H. Con. Res. 71, on Oct. 19.
Black, the chairman of the House Budget Committee, said the budget reflects the shared priorities of both chambers.
“Because we worked together to find common ground, we can move ahead toward tax reform and expand upon the ideas in the conservative framework unveiled last month,” Black said in remarks on the House floor.
Black highlighted that the budget included a mechanism that enables Budget Committee chairmen to adjust allocations if legislation is approved to revise Budget Control Act spending caps, and enhancements to House budget enforcement geared to strengthen fiscal discipline.
“This budget acknowledges that our economy is in desperate need of a jolt, and the tax cuts included in the Senate-passed budget hold the promise of doing just that,” Black added.
Following approval of the budget resolution, Brady, the chairman of the House Ways and Means Committee, said a tax reform bill would be introduced on Nov. 1, and his committee would begin markup on Nov. 6.
“When you look at today — the way America is taxed — it doesn’t take long to recognize this is completely and utterly broken,” Brady said on the House floor. “You can see that it’s so complex — it forces families and job creators to spend billions of hours and dollars each year just filing their taxes. It’s unfair. It gives wasteful Washington lobbyist loopholes and carve-outs to special interests while hardworking Americans get nothing but frustration.”
Brady said Republicans are working closely with President Donald Trump as he leads the charge on tax reform. “Together, we have bold ideas to deliver more jobs, fairer taxes, and bigger paychecks for all Americans this year,” he said.
Hatch, the chairman of the Senate Finance Committee, said the budget resolution would give his committee the head room required to develop the best pro-growth policies.
“… Congress is unified in its effort to advance a comprehensive tax overhaul that will shift the nation’s economic landscape and provide relief to middle-class families,” Hatch added.
Other members of the Senate Finance Committee, including Roberts, Burr and Cassidy, also praised the budget resolution, which allows for tax cuts to add up to $1.5 trillion over the next decade.
Roberts noted the tax code is burdensome, confusing and outdated. “There is widespread, bipartisan agreement on the need for tax reform, and I’m pleased the Senate took this important step toward providing tax relief to hardworking Americans,” Roberts said.
Burr said he was also pleased to see the Senate take the first steps toward repairing the nation’s broken tax code.
“It’s been far too long since there has been a serious overhaul of our tax system, and the time to act is now,” Burr said. “… We are on our way to starting the legislative process to simplify the code, encourage companies to bring money back home from overseas, and put hard-earned dollars back in the pockets of millions of North Carolinians and Americans who need it most.”
Cassidy joined the chorus of praise and highlighted the next steps in advancing tax reform.
“Next step will be working with colleagues on the Finance Committee to produce a bill that gives tax relief to working families and helps accelerate our country’s economic growth,” Cassidy concluded.