Draft of U.S. Tax Bill Coming Within Days, According to GOP Lawmaker
It won’t be long now before congressional Republicans table their first draft bill to reform the U.S. tax code, according to House conservative Mark Meadows. GOP lawmakers are under the gun to meet President Trump’s ambitious goal of delivering a major tax overhaul by the end of 2017.
Draft Bill Coming in Less Than Ten Days
House Freedom Caucus Chairman Mark Meadows says the House Ways and Means Committee has promised to release a preliminary tax bill about seven days after this Thursday’s vote on a budget resolution. Based on that timeline, the tax bill should be published on or before Nov. 3, according to Bloomberg.
Last week, Republicans stuck together to pass a 2018 budget plan that many say is the preamble to tax reform. The budget resolution was approved by a 51-49 vote. Rand Paul of Kentucky was the lone GOP member to vote against the measure.
Before giving the final approval, lawmakers must go through another voting process that will begin Thursday and run into Friday morning.
The new plan, which was first unveiled by the White House this past spring, is pursuing drastic changes to the tax regime. This includes reducing the number of tax brackets, slashing the corporate tax rate and instilling a one-time repatriation tax to encourage multinationals to bring offshore profits back home.
President Trump and fellow Republicans face numerous challenges implementing the most ambitious tax reform of a generation. This includes balancing promises of major overhaul against a self-imposed $1.5 trillion limit on the size of those cuts over the decade.
Analysts say that President Trump has considerable leeway to influence the proposal, but that the ultimate penning of the bill is a legislative process. This means it will be Congress, not the president, that will put the final details together.
Tax overhaul was a cornerstone of Trump’s election campaign. Combined with deregulation of key industries and massive infrastructure spending, tax breaks are expected to boost economic growth and make the U.S. more resilient to cyclical downturns.
That’s exactly what happened under the Reagan tax cut more than three decades ago. Although often maligned today, the Reagan tax plan laid the foundation for 25 years of strong, noninflationary growth. The U.S. economy grew an average of 3.4% annually between Reagan and Obama despite three recessions. To be sure, President Carter also helped lay the foundation by leading the biggest deregulatory effort in the postwar era.
Featured image courtesy of Shutterstock.