November 09,2017
Press Contact: Katie Niederee and Julia Lawless

Hatch Unveils Pro-Growth, Pro-Jobs, Pro-Family Tax Overhaul Plan

Under Finance Committee Proposal a Typical Family of Four Will See Its Taxes Go Down By Nearly $1,500

WASHINGTON – Today, Senate Finance Committee Chairman Orrin Hatch (R-Utah) unveiled the Tax Cuts and Jobs Act, a comprehensive tax reform proposal designed to provide fiscally responsible tax relief for the middle-class, bring down tax rates across the board, and enhance America’s competitiveness to keep jobs and investment here at home.

“For years, Congress has examined, debated, and vetted policies designed to remake the tax code in a way that will keep pace with the 21st-century economy and better meet the needs of the American people,” said Hatch. “Helping Americans keep more of their hard-earned dollars, find new jobs and increase their take-home pay has always been at the heart of this effort. And now, with a willing president, we have an opportunity to turn this effort into a reality.” 

The proposal, known as the chairman’s mark, was drafted under Hatch’s leadership, with Finance Committee Republicans, and is based on the unified framework released by the administration, Senate and House earlier this year.

The House Ways and Means Committee kicked off the legislative process for tax reform earlier this week with the launch of a markup of its version of the bill. The Senate proposal, released today, encompasses Republicans’ shared pro-growth, pro-middle-class vision, but offers different approaches on some policy provisions to achieve the unified goal.

“With this measure, a typical family of four will see its taxes go down by nearly $1,500,” Hatch continued. “We’ve preserved and even strengthened incentives that ease financial burdens associated with growing families and ensured Americans can save for their retirement and invest in their future. The Senate proposal benefits Main Street businesses and modernizes the tax system in a way that will shift our economic landscape to make America a more inviting place for businesses to invest, keeping jobs from being shipped overseas.”

The Senate Finance Committee traditionally holds conceptual markups, meaning the legislation is debated and examined as a detailed narrative, rather than actual bill text. The proposal released today is a conceptual mark. Hatch went on to announce the committee will begin to mark up the proposal on Monday, Nov. 13.

“We are on track to begin our committee markup on Monday,” said Hatch. “This is just the start of the legislative process in the Senate. We expect robust committee debate on the policies in this bill, will have an open amendment process, and hope to report legislation by the end of next week. I’m confident that if we continue to allow each chamber the opportunity to work its will, we can easily reconcile our differences, making good on our promise to enact comprehensive tax reform that will lift our nation and increase the standard of living for Americans across the country.”

Background
The Senate Finance Committee, which has jurisdiction over the American tax system, has spearheaded efforts in Congress to overhaul the nation’s broken tax code. Through working groups, hearings, roundtables, issue papers and markups, Senators have examined effective ways to update the U.S. tax code and make it simpler and fairer.

Hatch, who became the top Republican on the Senate Finance Committee in January 2011, has long called for a comprehensive overhaul of the nation’s tax code so that it’s more efficient and competitive for both job creators and hard-working, middle-class families.

Under his leadership, the Committee marked up tax extenders legislation in July 2015. This action served as the foundation for the PATH Act, which was signed into law in 2015 and put in place permanent and responsible tax relief for American families and job creators, laying the groundwork for fundamental tax reform.

The chairman’s mark that was announced today is a comprehensive overhaul of the U.S. tax code, which will lower individual tax rates for low- and-middle income Americans by expanding the zero tax bracket and maintaining a 10 percent bracket. The bill includes a reformed rate structure that targets tax relief to the middle-class while maintaining the existing tax distribution, and a 38.5 percent bracket for high-income earners.

The bill expands the child tax credit, and preserves the adoption tax credit and the earned income tax credit (EITC). It also protects the home mortgage interest deduction and provides relief from the death tax, among others provisions.

On the business side, the Senate proposal permanently drops the corporate tax rate to 20 percent and shifts the United States to a territorial tax system with base erosion protections. Main Street job creators would see relief through enhanced Section 179 expensing and a simple deduction for pass-through businesses of all sizes. With numerous pro-growth provisions, the chairman’s mark will put American businesses, small and large, in a stronger position to expand, invest, hire, and raise wages for hard-working Americans.

To view a full copy of the chairman’s mark, click here.

A score of the mark may be found here.

A summary of policy highlights may be found here.

Real world taxpayer examples under the Senate proposal may be found here.

A look at the Finance Committee’s history in the tax space can be found here.

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Senate Majority Leader Mitch McConnell
November 9, 2017

McConnell Says Tax Bill ‘A Big Step Forward In Turning The Ship Around For American Families’

WASHINGTON, D.C. – Senate Majority Leader Mitch McConnell (R-KY) issued the following statement today on the Tax Cuts & Jobs Act:

“The Senate Finance Committee, under the leadership of Chairman Hatch, has put forward much-needed tax reform that will give hard-working, middle-class families across America more money in their pockets, more economic opportunity and security, and more jobs here at home. This proposal is years in the making. It is the product of dozens of hearings over a period of many years, and has been guided by Republican and Democrat Chairmen and Ranking Members of the Finance Committee. This plan reflects the consensus views of the members of the Senate’s tax writing committee and the unified framework put forward by the House, Senate and the Trump administration.

“As the legislative process moves forward, each and every member of this body should bring their ideas to the table through an open and robust amendment process – first through committee and then on the floor.

“Make no mistake about the importance of this proposal to the millions of Americans who’ve seen their jobs shipped overseas, seen economic opportunity dwindle and who’ve rightly demanded a more prosperous future. While some have experienced enormous prosperity over the last decade, far too many families have struggled. This is another big step forward in turning the ship around for American families. It is why many of my colleagues on the other side of the aisle for years have called for tax reform, because they know our current tax system puts our nation, our small businesses and our middle class at a disadvantage. I hope they join us in this critical effort, because we cannot let partisanship get in the way of delivering results to those we represent.”

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November 9, 2017

‘With This Tax Reform Plan, The American People Will Know That Relief Is On The Way’

WASHINGTON, D.C. – Senate Majority Leader Mitch McConnell (R-KY) made the following remarks on the Senate floor regarding congressional tax reform efforts:

“Today, Chairman Hatch will lay out his legislative proposal for tax reform. It’s the product of a lot of hard work, dozens of hearings and member input, and I look forward to its release later today. The release of this plan is another critical step toward providing relief to the middle class. Once it’s unveiled, the proposal will go through regular order in the Committee. Senators on both sides will have the opportunity to offer amendments, and work together to help hardworking families in our country.

“This is our once-in-a-generation opportunity to lower taxes and shift the economy into high gear. In fact, tax reform represents the single most important thing we can do to spur growth and help American families. With this tax reform plan, the American people will know that relief is on the way. For you and your family, we want to make taxes lower, simpler, and fairer. For small businesses, we want to make it easier to navigate the tax code, grow, and hire workers. And for all businesses, we want to make it an easy decision for them to bring investment and jobs home and keep them here.

“As the Finance Committee continues its work on tax reform, both Republicans and Democrats will have the chance to offer their own ideas to make the bill better. I certainly hope they take it. This process isn’t behind closed doors. It’s out in the open for everyone to see and for everyone to take part. The House Ways and Means Committee is expected to finish their work on their legislative proposal soon. Under Chairman Brady’s leadership, they put in a lot of good work.

“I look forward to continuing to work with colleagues in both the House and the Senate along with President Trump and his team on our mutual tax reform goals. And our main goal is this: we want to take more money out of Washington’s pockets and put more money in the pockets of the middle class.

“In addition to the great work being done by Chairman Hatch in the Finance Committee, the Senate Energy and Natural Resources Committee under the leadership of Chairman Murkowski is taking important steps as well. The recent budget resolution gave the Committee instructions to generate a billion dollars of new revenue for the federal government. The Committee has now unveiled legislation to do just that by further developing the oil and gas potential in Alaska in an environmentally responsible way. Their good efforts can produce important benefits to both the people of Alaska and to our entire country.

“I would like to commend Chairman Murkowski for her efforts to support our nation’s energy security. This plan is a limited, responsible effort that can result in new jobs, a strong source of energy, and a boost to our economy – all while being responsible stewards of Alaska’s environment. I look forward to the Committee reporting this legislation next week. The Senate has many important items before it. Let’s work together to get them done, fulfilling our commitments to the American people.”

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meanwhile on the House side...
House Ways and Means Committee
Nov. 9, 2017

COMMITTEE APPROVED: Ways and Means Passes Historic Tax Cuts and Jobs Act

WASHINGTON, D.C. – The House Ways and Means Committee today passed the Tax Cuts and Jobs Act (H.R. 1) – bold legislation to overhaul America’s tax code for the first time in 31 years.

With this bill, a typical middle-income family of four earning $59,000 (the median household income) will receive a $1,182 tax cut. The bill is expected to create nearly 1 million new jobs, increase annual after-tax income for middle-income households by an average of $2,598, and grow our economy by more than 3.5 percent.

Upon passing the Tax Cuts and Jobs Act, Ways and Means Committee Chairman and lead bill sponsor Kevin Brady (R-TX) said:

“Today, the first and oldest Committee in Congress passed transformational tax reform legislation that charts a new course for the country. We reaffirmed for all of the families and Main Street businesses struggling to get by that relief is on the way – relief from a broken tax code, from a slow-growing economy, from stagnant wages, and from jobs fleeing overseas.

“The last four days of discussion and debate in our Committee proved Americans of all walks of life will be better off because of the Tax Cuts and Jobs Act. This legislation will reduce tax rates for Americans of all income levels so hardworking families can keep more of what they earn – that includes middle-income families in every Ways and Means Member’s district.

“Workers will finally be able to get the raise they deserve. More families will have help to buy a home, raise children, pay for college, and plan for their future. Businesses of all sizes will be able to create jobs, increase paychecks, and invest here at home.

 “At every step of the way, we have listened to our colleagues and the people we represent back home. We took additional action to help low- and middle-income families and Main Street job creators – including preserving the adoption credit to support parents who open their hearts and homes to an adopted child. We also establish a new, lower tax rate for start-ups to help them grow during their crucial first few years of business. And we made sure to meet our reconciliation instruction so we can get this bill to the House floor as soon as possible.

 “After years of work, dozens of hearings, and multiple frameworks, we are one step closer to delivering true tax reform to the American people. This would not have been possible without our Members’ hard work and commitment to pro-growth solutions that will improve lives.

 “As we move forward with the Tax Cuts and Jobs Act in the House, I congratulate Chairman Hatch and Senate Republicans on introducing their legislation today. We look forward to working with them to deliver a unified bill to President Trump this year.”

Tax Policy Subcommittee Chairman Peter Roskam (R-IL), an original cosponsor of the legislation, added:

 “Today we’ve taken a big step forward in giving Americans the kind of tax system they deserve. The work we’ve done on this bill will ensure that hardworking, middle-class families are rewarded – not punished – for their success. We hope to continue to work with our democrat colleagues in a collaborative process to make real tax relief a reality for millions of Americans.”

For individuals and families, the Tax Cuts and Jobs Act:
  • Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35% so people can keep more of the money they earn throughout their lives, and continues to maintain 39.6% for high-income Americans.
  • Significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes – from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
  • Eliminates special-interest deductions that increase rates and complicate Americans’ taxes – so an individual or family can file their taxes on a form as simple as a postcard.
  • Takes action to support more American families by:
  • Establishing a new Family Credit – which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses.
  • Preserving the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
  • Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.
  • Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans working to build better lives for themselves.
  • Streamlines higher education benefits to help families save for and better afford college tuition and other education expenses.
  • Continues the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization.
  • Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000 – providing tax relief to current and aspiring homeowners.
  • Continues to allow people to write off the cost of state and local property taxes up to $10,000.
  • Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts so Americans can continue to save for their future.
  • Repeals the Alternative Minimum Tax so millions of individuals and families will no longer have to worry about calculating their taxes twice each year and pay the higher amount.
  • Provides immediate relief from the Death Tax by doubling the exemption and repealing the Death Tax after six years. Family-owned farms and businesses will no longer have to worry about double or triple taxation from Washington when they pass down their life’s work to the next generation.
 For job creators of all sizes, the Tax Cuts and Jobs Act:
  • Lowers the corporate tax rate to 20% – down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
  • Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25% – the lowest tax rate on small business income since World War II.
  • Provides a new, low tax rate of 9% for businesses earning less than $75,000 in income to help the Main Street startups who fuel innovation and job creation in communities across the country
  • Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income so Main Street tax relief goes to the local job creators it was designed to help most.
  • Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers – unleashing the growth of jobs, productivity, and paychecks.
  • Protects the ability of small businesses to write off the interest on loans that help these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.
  • Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
  • Preserves the Research & Development Tax Credit – encouraging our businesses and workers to develop cutting-edge “Made in America” products and services.
  • Strengthens accountability rules for tax-exempt organizations to ensure that churches, charities, foundations, and other organizations receiving tax-exempt status are focused on helping people and communities in need.
  • Modernizes our international tax system so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
  • Makes it easier for American businesses to bring home foreign earnings to invest in growing jobs and paychecks in our local communities.
  • Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits, and manufacturing plants abroad.
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Chairman Brady Offers His Second Amendment to the Tax Cuts and Jobs Act

WASHINGTON, D.C. – Ways and Means Committee Chairman Kevin Brady (R-TX) delivered the following remarks upon offering his second amendment to the Tax Cuts and Jobs Act:

“I’m pleased to offer this amendment to the Amendment in the Nature of a Substitute on behalf of the majority on the Ways and Means Committee. Similar to the amendment I offered on Monday, this amendment will refine several provisions in the Tax Cuts and Jobs Act. It also takes action on three crucial priorities – helping American families, providing tax relief to Main Street startups, and increasing American competitiveness.

“Let’s start with helping families.

“First, among other important improvements, this amendment will preserve the adoption tax credit.

“Now, I know Americans who adopt are not doing this for the tax benefit – they’re doing it because they want to provide a safe and loving home for a child.

“I know from personal experience that the adoption process can be expensive and time consuming, and ultimately, so rewarding.

“And I know the adoption tax credit is important to many Members of our Committee, Republicans and Democrats – and we’ve had very thoughtful discussions about it over the past few days.

“So, with this amendment, we’re proposing to preserve this credit – a priority led by Ms. Black, Mr. Kelly, and so many others. This will ensure that parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.

“I’d also like to note that this amendment includes a provision led by Ms. Jenkins that will help families with disabled children save for their future.

“Specifically, this provision will allow them to rollover excess assets from a tax-advantaged 529 savings account into an ABLE account – which are designed to help Americans with disabilities lead successful and secure adult lives.

“This amendment also makes clear that we are preserving an existing tax benefit that allows military families to deduct the cost of moving expenses.

“Next, to help small businesses, this amendment offers several important provisions to make it easier for them to succeed and grow. This includes providing a new, low tax rate for businesses earning less than $75,000 in income.

“These are our Main Street startups who fuel innovation and job creation in communities across our country. And I’ve heard from just about every one of our Republican Members – from Mr. Johnson to my right, all the way down the dais to Mr. Bishop in front of me – that we’ve got to do more to help them thrive.

“So, with this amendment, we’re taking action. We’re going to provide our Main Street small job creators with a nine percent marginal tax rate in the bottom tax bracket rather than the 15 percent it is today.

“This additional rate relief will allow American entrepreneurs to keep more of their income in those crucial early years – that time period that really makes or breaks a small business.

“We want more small business success stories in America, and this special nine percent rate for our startups will help make that possible.

“Finally, this amendment includes provisions to further refine our international tax reforms to help accomplish our twin objectives of increasing American competitiveness while protecting the U.S. tax base and growing American jobs.

“These provisions come in addition to lowering America’s corporate rate to 20 percent, moving to a modern, ‘territorial’ tax system, and providing tough but fair rules to prevent American jobs from moving overseas.

“Is this area of the code complete? Of course not. We have much work to do as we work to ensure our American businesses can compete and win anywhere in the world. And foreign companies who want to invest in America to create jobs as well are addressed in a tough but fair manner. And other areas of our [economy], including insurance – we continue to examine the provisions in the original bill, make refinements and changes moving forward. I’m confident at the end of the day, we will strengthen all sectors as well as insurance.

“Over the past several days, we’ve had numerous discussions on many of these same priorities. These are areas where members on both sides of the aisle said we need to take a second look. We did. And now I’m offering this amendment to put them in the bill.

“Just as important, with this amendment we can include these important priorities and meet our reconciliation instruction – ensuring that we can get this bill and this long-awaited tax relief to the House floor as soon as possible.

“And, to the extent that members have additional ideas to help families and strengthen our economy, I look forward to working with you on those after our work on the Tax Cuts and Jobs Act is finished.”

CLICK HERE to read the amendment offered by Chairman Brady.

CLICK HERE to read a summary of the amendment offered by Chairman Brady.
November 9, 2017|Speaker Ryan Press Office

Statement on Committee Passage of the Tax Cuts and Jobs Act

WASHINGTON—House Speaker Paul Ryan (R-WI) issued the following statement after the Ways and Means Committee passed H.R. 1, the Tax Cuts and Jobs Act:

“Today, we took yet another critical step toward delivering real relief to the American people. I want to thank Chairman Brady and the Ways and Means Committee for making important improvements to this historic legislation. After listening to our members, the committee preserved the adoption tax credit for middle-income families, and increased targeted relief for Main Street small businesses and startups. This bill will cut taxes for a typical household by $1,182, raise take-home pay by upwards of $4,000, and create nearly one million full-time jobs. It is exactly the type of tax cut and job growth our country needs to get back on track, and I look forward to a robust debate on the House floor.”