At tax reform and the proposal republicans released today. We will hear from paul ryan and the chair of the ways and Means Committee on the republican side. Crocodile, Democratic Leaders in the house and senate responded to proposal. The first in the house press gallery. Has a rock and have unveiled their tax reform bill hr 1. We are joined by a tax reporter from politico pro. How did this tax reform bill come about . What was the process like . It has been a busy year on the committee and with leadership. Theyve have coordinated with their Senate Counterparts and officials from the white house. President donald trump is involved in driving the store the finish line. It has been a busy year on the tax front. It has been many years in the making, but when President Trump was elected, i think the republican members of congress saw this as an opportunity to really drive things this year, 2017. We have a link to the bill on our congressional product with a couple of highlights from this till. It would reduce the number of individual tax rockets from seven to four. It reduces the top Corporate Tax rate from 35 to 20 , limiting Morgan Mortgage interest reduction. It would roughly double the individual and families standard deductions but also cap state taxescal property 10,000, increasing the child 1600edit from 1000 to for child and no longer allows medical expense or property loss deductions. One of the issues that came up a week ago and the budget vote was the issue of the state and local tax reduction from 20 members of the new york a new jersey and new jersey delegation. How was this results in the tax for farm bill resolved in the tax reform bill . A compromise. State and local taxes generally include three major taxes. Property. Les, for they have done is stripped away the deduction for income tax. Nd sales theyre leaving in place a deduction for property taxes only, but up to 10,000. The state and local sales i am sorry, state and local deduction as we know it would not be the same way forward. A Corporate Tax rate. That drops from 35 to 20 . Is that a permanent drop . Theyre proposing a permanent change. There has been a lot of chatter for weeks if not longer that the change could last for a certain period. Only a few a decade or it may get phased in slowly. Maybe it will eventually get to the 20 . Always on the paper that rolled out this morning is permanent 20 starting once the bill is signed for next year. They had that discussion up until the last minute from what i understand. I think i was part of deliberations into last night and figuring out how they could pay for a 15 Percentage Points reduction in the corporate. That is why the other options were still on the table so late in the game. Provoke and efforts were not just a lower taxes but certification. I understand theyre trying to reduce the individual reform sized return. Card is that correct . That is the talking points. Republican members involved in this like to walk around and show these sample postcards. Implication is a big motivator for them, and they feel like the public and individual taxpayers and business taxpayers would do greatly would benefit greatly, i should say, from spending a whole lot less time whatffort in assembling you owe it the end of the year. Is there anything in this house legislation for democrats and, secondarily, what is the biggest obstacle . I do not think democrats are coming out and much support about all at this point. There are some provisions that theoretically would attract dust would appeal to the democratic side of the aisle. The higher tax child credit is one of them. There are a couple of 300 credits that i think did not exist before related to dependent care. Not the Child Tax Credit increase, but these additional credit theyre putting on the table, those go away after five years. Those are interesting new developments. As far as a stumbling blocks, it coverd to find offsets to the revenue changes that this will contemplate. The senate has different ideas about that. Weeks, we minutes to will start to see maybe a little in theearly i think next few weeks, we will see more clearly where the differences are. That remains to be seen. The House Republicans but the bill out today. There is a small window to affect changes. The chairman will be in demand. There may be big changes people are maybe some really small changes. When the committee begins consideration a from that point forward, i think the amendment process will be pretty limited. Of the next couple days, if anything gets changed, that is the window of opportunity. They start celebration next week. What is the timeline or expected timeline for passage in the house . Ultimate passage would be week after next. Committee passage is on tap for next week. What is called the markup gets underway on monday, and it is scheduled to run through thursday. Maybe monday, tuesday, wednesday Ash Wednesday could go into the evening i am told are later in thursday may be part of the day. That way members will not be scheduled to get in on friday. They will have a day off for veterans day. The week they come back after veterans day is i think when it is excited to get the house look. Or lorenzo is a tax reporter politico pro. G thank you for the update. Thank you. Has broken leaders announce that House Republican leaders act in theheir ways and Means Committee