Transcripts For CSPAN House Ways Means Tax Reform Markup Part Two 20171107

The term unborn child. If parents want to save for their childrens future expenses can they open five to nine accounts in their own name and then transfer the account to their child once their child is born . Yes, you can. Hu i have done research and found the only place the appear as itchild is in laws relating to crime in emergency medical procedures for pregnant women. So does the term unborn child apparently where in the tax code . Not presently a new Internal Revenue tax code will stop so what happens if a woman has openness in the name of her unborn child and she subsequently ms. Carries. Would she be required to submit notice to the irs . Would she be committing fraud if the child was no longer in uterus in a stage of development in the womb . Moment. Step back a under present law, 529 laws are creatures of the state and governed by how the state has subject the plan to federal overlay. Under present law, if there is a death, the treatment of a plan where a beneficiary has died may vary from state to state. It would be i understand. I would like to enter into the record from november 2 of this a quote. Insertion of this language has nothing to do with College Savings accounts. This is an attempt by antiabortion advocates to reidentify personhood but in the tax code. Language is ahe small increment and the momentum we are building to ensure that one day every child is welcomed and protected under the law. The antiabortion group march for life when even further saying the proposed plan is a hugely forward for an antiquated tax the and we hope this is first step in expanding the tax code to include unborn children as well. It is this kind of dangerous language appearing in other areas of law, it could have andreaching implications ultimately inclusive of this language is another attempt to bar womens constitutional right to abortion but in this time it is under the guise of changing our tax code. This bill eliminates the deduction for state and local income taxes paid on wages, correct . Action is, it does. Chu isnt it true that this allows owners of passthrough entities to detect deduct portions attributable to their is this . Yes. Drag so a private Equity Partner aceiving shares could receive federal deduction for income tax paid by a janitor at the same private equity firm would not receive a deduction for the state and local income taxes he paid . I believe under the legislation it is generally incorrect because financial fromces would be precluded maximum rate of passthrough treatment. It is treated as ordinary income and income taxes attributable to that i think under the legislation would not be deductible. A passthrough still gets to . Educt income taxes, correct attributable to business income. Right, that is what i am talking about. This is the height of hypocrisy to not allow individuals to deduct their income taxes while allowing businesses to do the same. Arer. Buchanan, you recognized. Mr. Buchanan thank you. I want to talk about the idea of deficits. 2. 3 trillion in the next year and a half. Everybody has a reason they run for congress. The year i got here, it was 130 billion. If you look at the last 10 years it is 10 trillion dollars. When i got here it was 8. 7 train dollars running a evans said. I mean 8. 3 train dollars debt. Mean 8. 3 all year i trillion dollars debt. We have a accumulated 10 trillion dollars. We have had a 10 trillion stimulus. There is plenty of blame to go around. In 50 years have only balanced the budget five times. There is plenty of blame to go around. The point i am trying to make is maybe there is a way we can do you know on average what the growth rate for america was average per year the last 10 years . I am sorry mr. Buchanan, would have to look it up. 1. 5. Never got to two. Probably the slowest growing in 10 years. To continue doing what we have been doing does not make sense. And business i always think, you either grow or you die. That is why so many people have not gotten a pay raise in 10 years. Our economy has not grown. You know if we grow the economy, 1 with this tax plan in the next 10 years, what that means in terms of Economic Growth . Mr. Barthold i believe the congressional Legend Office growth projection is one. 5 , so you would be talking about an annual growth rate of real gdp of 3 . What does the extra 1 mean . H radel economy, and 8 trillion omy it was 2. 8 trillion. I will give you the math. You might be right on that. They were saying 1 growth. That is what we clearly need to do because what we have been doing does not work. So mayson why in my mind people are coming before us is because of two things. Oil is down. The business 40 years before i got here, my kids are there today. I can tell you, a lot of our Business People who are looking to get into business are relocating to florida and part of it is leadership. They are open for business. The second thing is, they are a lowtax state. They are always looking for ways they can lower the taxes. Everys why so many people single day from the midwest or northeast are moving there, simply because of the taxation difference and that is why this bill is so important going forward. I want to touch on the individual rate to make sure you understand what you said. A19, the middle class gets tax cut . Is that what . I said the , 2019, allovided categories receive a tax cut. In terms of Small Businesses, what does expensing do . I mean, how much is that going to help the Small Business guy . Most make 100,000 or less. 90 of them. I used to chair the florida chamber. 100,000 gourmet club that they can write off, that has to be a gigantic opportunity for them to grow their business and great jobs, wouldnt you agree . Eggs yes, sir. Yes, sir. I will clarify, the expansion is from a under current law, expensing 500,000 worth of equipment versus expensing 5 million worth of equipment. We have got to turbocharge this economy. I think this will implode the growth in terms of america. If get america back in the business of business. Thank you, mr. Chairman. Thank you mr. Buchanan. Thank you mr. Chairman. And thank you mr. Barthold for being here. I was listening today and i feel a little bit bad for you. I know it is strange, isnt it . But, you know, a lot of people raise their voices at you and make political speeches is one really your role here today is to answer questions about the legislative tax in front of us. So i appreciate you being here and doing that for us because we want to make the best decision for families and the best decision for america so that we can growth the economy which basically means when you grow the economy, you raise wages, get more jobs in the country, people up options. Home was the last time you had worked on a bill of this size that was doing reform of the size . You been in your position for how long . Mr. Barthold i have been chief of staff since 2009. Have you had a bill of the sizes you been in your position . Mr. Barthold, the American Investment in recovery act was substantial but this will be mr. Barthold the American Investment in and recover act was substantial but this will be larger. It was interesting for me to hear some of my colleagues say this bill was written in the dark of night because i remember clearly over a dozen formal hearings on tax reform i have been a part of in this committee. Ive also heard my colleagues speak about not having will the lady yield ive been in several meetings that were bipartisan will the lady yield gentlelady, thank you. I wanted to ask you for some clarification on the Child Tax Credit gentlelady i have spent a lot of time working on Child Tax Credit. The change to the family tax credit has been very important to me that we get right. I wanted you to tell me a little bit about the demographics of the millions of people that would benefit from raising the 1000, 60 credit from up to 1600 per child and then we also at credits for the taxpayers and adult dependents as well. But what does that mean . What do the demographics of the family that would benefit from that Child Tax Credit of 1500 us this bill first of all, the Child Tax Credit has expanded and its 1000 up to 1600 dollars. Under present law, the Child Tax Credit is phased out beginning at 110,000 adjusted gross single return. 4 for those people who retained the single benefit, the child 600redit is increased by per child. The legislation before you also raises the phaseout point of the Child Tax Credit up to 230,000 or 115,000 for single files so that means if you have can you pull that microphone and a little closer to you . I think you have to raise the microphone volume. I think you can pull it closer. I am sorryd members, i was explaining that the legislation also increases the phaseout. The beginning of the phaseout tax credit. Child for example, under present law, nt filers so many more families will qualify . 115,000,ld so 230,000 will now get credit. That will be the profile of the family that will now benefit. For those that claim the child credit presently, 600 increase, for a number of families, of the0 and 200 30,000 gross income. Potentially an allnew and if it of 1600. Ask how will this benefit families that have three or more kids . Rides it is as numbers times three or four or more. So the benefit grows. I appreciate that focus on families and strong families. We want them to be able to provide strong futures for their families as well. The bipartisan feedback has been put into this. I yield back. Mr. Chairman. I am so excited to be here to remark on initiating our tax reform plan. Tax cuts and jobs act. Lot. He title means a tax cuts. Too often i think we focus too much on just where the tax cuts are going. That is not my primary goal. My primary goal is to restore our country is a land of opportunity. Barthold, your distribution analysis, correct me if i am wrong, but doesnt it say that every19 and 2021 that sees a tax cut . Is that correct . That is correct. 2025 there 2023 in is a small tax increase and then it comes back down in 2027. Inside correct . That is correct. To back that up to back that up, the Washington Post said to take some Democratic Senators that quartile wouldme receive a tax cut. That in fact, 23. 5 percent would receive a tax cut. Thatthen they throw on to saying that every income quintile would receive a tax cut. So we have pretty good reference material. If you count the Washington Post, every income quintile will receive a tax cut. So get beyond that. The most important thing to me is work, because i think that is how you restore American Opportunity. Mr. Barthold, you probably have numbers in front of you. Would it surprise you, mr. Barthold, to know that in 1990 well let me step back. In 1986, the tax reform cut was competitive with the world. And since then, we stood by while other countries make their tax cuts more competitive. Then in 1990, in inflation, just to dollars, the middle class dollars persand year. That surprise you, mr. Barthold . Know you are probably not born with a 1986 tax cut came out. I joined the staff after the 1980 six act. Would it surprise you the middle class was making 54,000 a year and 1990 . In 2017, if we went back, guess there has not been substantial growth in median Family Income of the last two decades. So i would not be surprised. That is my point exactly. The middle class has not had a raise since 1990, for goodness sake. And mr. Barthold, would it surprise you that according to the Census Bureau in 1990, the thele class made up 47 of population. Excuse me, 37 . Excuse me, 47 and today it makes up 43 . With that surprise you, mr. Barthold . Mr. Barthold mr. Rice, im actually confused. Mr. Rice this is according to the Census Bureau. They said in 1990, the middle class made up 47 of the American Population and today it makes up 33 . My point inc. That since 1990, the middle class as shrunk and it has not had a raise in 27 years. I am looking for growth and opportunity. This tax plan, and i know you have the joint committee on tax, but with rate reductions and with expensing, would you expect mr. Barthold . Mr. Barthold as i noted earlier, there are a number of provisions that are clearly progrowth. There are other considerations to consider. I dont want to prejudge the analysis. Well it is said it will increase gdp growth by 24 . I have had estimates as high as my time is expired. Thank you mr. Chairman. I am juggling these coffee cups. Just a handful of quick things. I want to make sure im getting my head around and then i thought it would be appropriate. Hare sort of a personal legislationeform were to become law today is written, you see only 6 of americans having to itemize anymore. That would be our projection for next year, that is correct. So, 94 of americans would be just using the standardized deduction. That is correct. Have you ever taken a quick look to see, with that actually changed Tax Compliance because of it becoming so dramatically simpler for so many people . Actually, compliance is part of all of our estimates. So, some of the changes would be note there has been compliance, reporting of charitable reductions for example. And other miscellaneous itemized expenses said there would clearly be summoned those areas. It would be interesting as you start to do your growth modeling, to sort of see the breakout. We may gain some revenues from compliance. The estimate you have before you today or what we would call conventional estimates that tries to account for compliance gains. Mr. Barthold, in your mind, will you also take a look at payroll taxes . Foundations and their models that was published on friday had almost 300 billion additional payroll taxes. Will that be something you will also look at . We analyze payroll taxes for the committee as part of this analysis in terms of what happens in terms of onbudget and offbudget effects. I assumed the analysis of the Tax Foundation youre referring to as may projection of wage growth, generally subject to payroll taxes and taxemployment tax and fica if that is what they are reporting. Likewise, we would report increase in labor income as part of our analysis. Tracks would you agree some of that will be sensitive to the expansion of the economy . If wages increase. If labor force increases, you would see affects of the sort you just mentioned. Might understanding in some of the modeling you have done in the past on the static side where you used cbo cost gdp calculator. I think the cbo was coming back saying in the next 10 years expected 1. 89 gdp growth per year. Estimates start by making comparison to the cbo macroeconomic baseline. We dont use any sort of cbo calculator. Presenteds of what we to you over the past couple of days, how would things change relative to that baseline before trying to assess the growth rate change. None of that baseline changes in the numbers you produced . That is correct. Look, this is less of a question probably closer to a statement, many of us have an absolute fixation in a great bubble the death entitlement crisis just on the horizon. Whether it be some of the models someblowup in 18 years, longer, some less, the fact of the matter is we are going to spend about 50 trillion over the next decade. Spansion,economic change and Economic Growth, moving away from 1. 8 nine gdp growth to if you could get to 3 and have expansion of another 2. 8 train dollars and the size of the economy. Trillion dollars in the size of the economy. If you care about retirement, if you care about your brothers and sisters, care about people being able to save in finance and have resources for education, we are in incredible trouble. This becomesern is defending the status quo or defending an opportunity to grow. I yield back, mr. Chairman. Thank you mr. Chairman. Mr. Barthold, thank you for being so patient with us. Im excited. We content about tax reform a job creation but something just as important i hear about from is heading ready for these jobs and in flux. However as it stands now,. Amilies face a maze isnt it true there are 15 different tax incentives related to education . Reince yes, it is. Do families tend to use these aswan or in combination . Some are incentives to save for future expenses. Some are incentives to pay for past expenses. Some are incentives for current expenses. So, it is reasonable that many taxpayers may use multiple provisions. So is it paramount to figure out which incentives are right . They might turn to an irs publication which it finds the incentive. Are you familiar with how my pages that little document contains . Im afraid im not. Can i give you that information . I can look it up but i do not know. It is 95 pages. We have Everything Else to worry about, you should not have to sit down and wade through 95 pages to figure out or hiren benefits somebody. Can you explain why the education tax benefits and hrone in the new provisions as i noted in the overview, every americanaw opportunity tax credit and the lifetime tax credit and there is also currently expired and there has been of the past couple years a tuition deduction tax credit. These are all tax benefits related to current outlays for education. Hrone would repeal the lifetime learning tax credit. It keeps repeal the deduction tuition. It would say that for current expenses, theres just the American Opportunity tax credit. It would expand the American Opportunity tax credit to pick up some of the purpose of the lifetime learning credit. Claim tuitiono expenses for more than four years. Expansion is to provide a fifth year. So thosea tradeoff three concepts are collapsed into one. In terms of saving incentives, i know we covered an account basically repealed with balances. Ransferred hrone would keep the 529 program. Eliminate the covered program, so to the extent there was overlap there it would repeal the exclusion for the interest and special bond savings bonds related. It would just repeal that out right. I appreciate that. I am going to assume that irs publication 970 as much shorter. Delineation ofhe the tax credits that are indeed rolling in, making it easier for families to claim benefits. Thank you for your insight. I yield back. Recognized for unanimous consent request. I request consent to correct. He record you are recognized. Thank you mr. Chairman, very kind of you. Mr. Chairman, my good friend from tennessee mr. Black who i have a great deal of respect for, i hope she does not adhere to secretary of the treasury mnuchins. A dollar fors every dollar sent back. Atnew jersey, we get . 72 most. According to tennessee, state general revenue is from general late. 27 of the federal laden new jersey is only 27 . Who really counts . I am tired of hearing anybody say that we are being subsidized by these other states. Is there unanimous consent . Get order . Recs i am sure youll do that. Anyone wish to get last words . Mr. Chairman, you apparently took exception to my of the word for development of the architecture for the terms of developing this tax cut. So what i thought i might do is if we cannot agree, maybe we can agree on the term, maybe not. So im going to give you a chance on the other side to say that we are going to build a safety net if in fact this does not happen. So im arguing the problem that we have in our Economy Today has demography, globalization, it has to do his skill set given the 6 million jobs that were referenced. 18,000 18,000 precision jobs. And the opiate epidemic which some argue make up 82 men dollar sideline. A 2 million sideline. I am proposing that we would allow the secretary of the treasury to examine whether or not the deduction for real estate taxes proposed in this legislation, if it were determined by the secretary that the present values nationally in the state and district of by 10 orave declined more in any area, the pretensions of hrone would become not all in the following year. So i think then we would have fulfilled what some of our generation would call invisible shield. So this banter on what constitutes gross, i am saying growth is speculative on some of the proposals. In 2001, 2003,at and with repatriation, there is little if any Economic Growth to justify that expenditure. Arguing is, what im that perhaps this provision being offered is being calculated in the proposal that is perforce today that maybe though wisdom would dictate that 911 would not have occurred or the two wars would not have occurred, including the fact that we now 16 years later are still in afghanistan. Adding on to that the additional argument we have the second since the andsion of world war ii with the great recession. So based upon all of that knowledge, the guarantee has been offered by the majority that this is going to get up north of 3 growth. I am saying you used the caveat, maybe i will use the caveat, maybe not. Juste you yielding back or pausing . I think the arguments would be difficult for you to challenge, mr. Chairman. If you probably just want to proceed i respectively decline yes, sir. Mr. Levin. T y thanks. For the term i think today we have heard the term middleclass more than any other time. To rain on the parade, want to go through. Of the distribution analysis, the overall showsbution for 2027, it 20,000,ase in taxation 30,000, right . Results hurt e40, each a tax decrease of only 443 million. Is 36 those above, it million. I read that correctly, and do i not . Yes. Distribution affect, distribution chart, it shows for 2018 with the repeal, that there saved for31 billion almost allurns and 200,000 income annually and above, correct . Am mr. I think i levin, i think you are referring to some information other members do not have before them. I asked that this be placed in the record. My recollection is about 4. 6 oh you taxpayers subject to the i do not have a copy of the analysis. I am just reading from the analysis. The president falls within that category. Passthroughs, we have not been able yet to give us the distribution table but we discussed this before. We discussed it, when you look at the distribution table anine from this document called overall view of the federal tax system it shows that if you e,k at schedules c and almost all of the passthrough money is in the schedules, right . Ask for the benefit of the rest of the members, mr. Levin is theing at for elephant of the rest of the members, mr. Levin is looking at and table ac ex17 nine and that document provided a distribution for ok, i have a limited time. I would ask this would be put in the record. It shows happy to make sure all the members have a copy. Almost all the money would be reported in schedule c and e, correct . Yes sir. It shows schedule c and d together schedule c and e together have have have over 500 billion. Wrong. Ion is the estate tax to repeal 119 billion of the repeal 22 before billion and that includes other changes but i i think itit would be helpful. That is why i said i thought the speaker statement that i read deserved a rating of four pinocchios. The same is true of the cutident who said we will taxes for middleclass families. This is a major tax cut. The major tax cuts in this bill overwhelmingly go to very they talk about special interests. The main special interests in this bill of the very wealthy. Reference toan, in the documents that mr. Levin referenced, i will have delivered to every member of the Committee Later on this afternoon. Chart that he was referring to on schedule c and d are dowell have that delivered later. Excellent. And to the media also. I move to strike the last word. My friend mr. Higgins from new york, i sincerely mean that. Confusion when i you. His questioning of what i wanted to clarify, because i hear this quite a bit and it deals with the state and local Tax Deduction and the loss deductions are different than credits. Deductions are a partial reduction in your overall Tax Liability. If you lose the income Tax Deduction of 9,000, that doesnt mean you get a dollar for dollar reduction in a Tax Liability reduction. It is based on your income bracket, your tax rate. Isnt that correct . That is correct. The value of the deduction is generally the amount of the times the taxs bracket you are in. At the local level, correct . One of the reasons i advocated for compromise is the property taxes are what we consider regressive taxes. Taxesy your property regardless of income, if youre a single parent, if youre a senior on a fixed income. Whatever that the tax bill is, you pay that full property tax bill, correct . The property Tax Liability does not vary with income. When you lose the income Tax Deduction, generally income taxes at the state level are very progressive. The more you make, the more taxes you pay. Assumptioncorrect that income taxes at state level are highly progressive so the higher income folks lose the benefit of that deduction on their federal tax return versus low income folks . On the federal income tax itemizes step back, tend to be in the top distributors to 10 with. They tend to be progressive in different degrees. I appreciate that clarification. It is one of the concerns i raised. I respect the chairman for entertaining a compromise because when we look at the property taxes in new york, they are highly regressive. They hit the lower income folks and the Single Parents and the seniors in a very harsh way compared to the income taxes and being a person who wants to be to yes and govern and break the gridlock, i think taking that approach is a reasonable approach. I think the chairman. Mr. Lewis. Thank you mr. Chairman. I moved to strike the last word. It is hard to put my feelings into words. I was elected to congress in november 1986. Only a month after the Tax Reform Act became law. Cuts, the, not tax , weers of this committee took our both on the house floor 30 years ago our oath on the house floor 30s ago. It set the gold standard. Elected by the people, we work with the people and they fought for the people. Back then, the Committee Members took the time, they worked across the aisle and across the dome. They inspired many of us to fight for the ways and Means Committee. The oldest Standing Committee and house of representatives. Each and every person in the room knows that the bill we are considering is an insult to their legacy. This bill is a shame and a disgrace. First and foremost, this type of legislation does not make the tax code any simpler or any fair. Congressional republican passed a tax bill of this size so late in the year, it would be a ourtmare to implement understand this bill by january. This bill is a slap in the face to real people who have given trillions of dollars in tax breaks to millionaires and billionaires. This is not right. It is not fair. How can we punish teachers for trying to buy supplies for the classrooms . . Ow can you target the sick how can you target immigrants, children and children anyway that is mean and heartless . And how can you bury your head in the sand when they are great issues facing our country like transportation financing . Student debt . Of what will housing . Care for veterans and their families . After this markup, the smart like the spotlight will move on. Missing person in this room will know what every Single Person in this room will know what happens. This bill robs poor peter. Republicans will begin tos cut safety net programs to pay for the Corporate Tax cuts. The record should be clear, this is not about tax reform. These are tax cuts for the superrich. Members of this committee must be honest to the people we represent and serve. Winners asicks a few our children will suffer. Look around us. We sit in the chairs of those as they designed visionary programs like medicare, Social Security and the g. I. Bill. How can we look at ourselves in the when we know that this bill is our gift to our children and grandchildren. There is no two ways about it. Mr. Chairman, i say this with all due respect, spiteful, irresponsible tax cuts is not the is not worth the paper on which it is written. Let us come together. We should do better in the American People deserve better. I yield back. Mr. Doggett . Thank you, mr. Chairman. We reached the holy grail of the republican party. It exists to provide tax bricks to the few to benefit the privilege and it has been amazing of the price that is already been paid to get to this point is there is no wrongdoing that donald trump can engage, no insult, no attack on our justice , noem our Law Enforcement engagement of our security that will cause many of our republican colleagues to say enough. Or to speak up about the wrongdoing because theyre convinced that donald trump is the golden ticket. Today the odds look pretty good in their favor of forcing through trillions of dollars of Additional Debt and providing tax changes that many benefit the few in the multinational corporations. I would remind my colleagues of our experience on health care. That when it appeared that millions would lose their coverage, americans united and spoke of and said no, this will do so much harm to my community, to my family and to my neighbors, that we cannot have this it im convinced that it is not just the courageous votes of john mccain and Susan Collins to the fact that the American People said, we will not accept this. We can begin to see the effect the American People paying attention to the fine points of this complex legislation. What a difference that they have already made. Only a few months ago, this love bill this bill was going to be financed by forcing us to pay percent more everything that we import forcing us to pay 20 more for everything that we import. Because americans demanded that that go, it is out of the bill. Only a few days ago, it appeared that our Retirement Security be significantly jeopardized by removing incentives for retirement, but because the American People have spoken out, were beginning to see that change. It has not been as complete as regard to property taxes, having to pay a tax on top of a tax. At least there has been a change. If the American People continue to study the impact of this bill and speak out, this great harm can be prevented. Im pleased that our colleague brought that big stack of books down there. Eight big volumes of all the complexities and tax laws that exist. What he failed to point out is in the period since Newt Gingrich was sworn in as the republican speaker of the house, a period of a couple of decades in which democrats have had the presidency and congress for two years, that almost 40 of those books were enacted by a republican by a Republicancontrolled Congress us providing one special interest loophole after another. Today, they tell us after having put so many loopholes that they are the ones who can figure out how to simplify. The multinational corporations are not going to be filing their tax returns on a postcard. They have an incentive to build their factories abroad. They are going to go with this bill incentivizes them to place to factories. They all sort they are outsourcing those jobs to other countries. This bill is a job killer. Its underlying permits if you do on up money toward those at the top, it will trickle down. It has been refuted by every economist that has looked at it, including goldman sachs, talking about how trivial the increases will be. It is essential that we not outsource more american jobs, that we not burden this generation and future generations with more debt as this does. At the beginning of this enterprise, the chairman, they told us they would have a fully pay for tax bill. I yield back. Mr. Kelly, you are recognized. I sometimes get confused when we talk about these things. The world i come from is the retail world. I have done it for 45 years. 45 years on the blacktop. I get to talk to hardworking American People every day. When i sit down and talk to them across the desk, i cannot remember the last time somebody told me, you know what . I am going to take advantage of a tax credit today. What they do tell me is, i just got a raise. I can afford to get a new car. My wife and my family im really feeling good. The economy is getting back on track and i have a lot of optimism toward the future. Tot a love to do, we try to lower their optimism. We try to happen down and say dont get too excited. This is not the right way to go. This is not me talking. This is the Tax Foundation. I am having trouble understanding how a bill will give back money to the average mac and families average American Families. The bill will increase u. S. Ages wages. A bill that will grow gdp by 3. 9 , almost 4 in an anemic the newwhere we said, standard, if we can get to 1. 3 or 1. 4, set off the fireworks. Listen, United States is currently number 23 on the list. If you want to start a new business, i dont think many people look at this and say, i think i will take a shot. I think that is where i want to go because that is where i have the best opportunity. Can people have watched this go on and on, this circus between the parties and they start to think about it. Ive got to tell you this, they blame both parties. Not republicans, not democrats. They say to themselves, why is this . In a country that has been blessed for so long with so much, why is it that we cannot agree on making our lives easier . Why cant we agree that more takehome pay is great for Everyday Americans . Why is it we say, listen, if youre in the corporate world, we are going to make it tough for you to stay here . Were going to over regulate you and say these slbs are unpatriotic. Theyre just not stupid. They look at what is going on here and there is not a lot of optimism. Dont believe me, go back to your calendar to november 8 last year and you see when this thing started to accelerate. After eight years of stagnation, the American People said, you know what . What an incredible day for america. We are going to take off again. That has happened. Look at peoples pensions. Look how the stock market is stored stock market has soared. This is because of optimism. The other thing that can stop that is how we handle this tax reform. If you tell them, you poor stupid people, you dont get it. We are not going to go along with it because it is ever poking bill. There are democratic amendments because it is a republican bill. There are democratic amendments. When you tell me listen, i want to go back in my 48 years on the floor and somebody tell me the only reason i am buying a new car or truck is because of a tax credit that i did not have before. Think about what we are saying. Think about how it is heard. Forget the charts, the graphs. Features and benefits that add value to hardworking american taxpayers. That is the key. It doesnt matter who wins the debate. I dont want to make you look bad. What i want to do is make america look great. Not just great for a time being but great forever. If he cant get back to who we are as a nation, so blessed with assets that nobody in the world has and say the biggest Thing Holding us back is the fact that we are so divided politically, what a sin. It falls in our laps right now. Our generation. My dad was one of the greatest generation, they would of to fight a war to save us. Mr. Chairman, thank you so much for doing this. It is hard to believe that it took three decades for us to wake up and smell the coffee. Thank you. Iq. Thank you. Mr. Thompson, your recognized. Mr. Thompson i want to reiterate a point i made earlier, and that is a tremendous amount that this bill will add to our debt. 2. 3 children dollars. 2. 3 trillion. My friend from pennsylvania made light earlier suggesting that some of us have amnesia and not remembering how the debt grew. I dont have any amnesia about this. I am very well aware. I know what happened when we had the last round of unpaid for tax cuts. They didnt pay for themselves. I remember when we had unpaid for wars. I remember when we had unpaid for Prescription Drug legislation that increased our debt. I remember what we had to do in order to get out of the worst recession that we have ever experienced. We had to borrow money to do that. Had we not done it, some of us on this day is when not have the businesses that we brag about having. Having not stepped in and saved some american businesses, it would of been a lot worse than it was. We dont have any debt amnesia. I carried the amendment on the you pass a bill, he have to pay for that bill. When the democrats have that house, we put that in the rules. One of the first things the republicans did when they took over the house is they took up the pay for of the pay go rule as it pertains to tax cuts. , it costso a taxcut money. If you dont have the pay go, it increases the debt. We dont have amnesia. We need to make sure we keep our finger on the pulse of this debt. We need to make sure we do everything we can to reduce it because the cost of service and that that gives our constituents fits our constituents in the pocketbook. It undermines education. Their health care, their Infrastructure Investments and Everything Else. Bys bill increases that debt 2. 3 2. 3 trillion. Ask what in the world would you have written into this bill provision that takes away casual loss of benefits being able to manage of. You are the guys that wrote it. We were not included. The Majority Party wrote this bill. It wasnt anyplace where we were. The closest we came was when we were invited with some of you to go to the white house. We were told this was going to be the greatest tax bill ever. Told theyons, we were wanted to work with us to help do this. They didnt want to work with us. The next day they rolled out a tax bill in indiana without any single democrat providing any input. The most substituted decisubstantive discussion we had with the president is when he informed us puerto rico was an island in the middle of the ocean and the ocean was big. We didnt talk any specifics about tax policy. We didnt write this bill. We want to participate in tax reform. This is in tax reform. A big tax cut for the wealthiest among us. Sadly, middleclass people take a hit. Just like the middleclass people in my district who lost their homes in this fire who are not going to be able to take advantage of the casualty loss provisions. Why in the world would we do that to hardworking, middleclass americans . You found time to write in antiabortion language, but you have to take out language that gives folks with uninsured losses a little bit of hope. That is the wrong message to send to a community that has gone through a terrible disaster. You know that, because some of you are present districts that just went through terrible disasters, hurricanes in the southern states. And you wrote in legislation that protects them. You grandfathered them in. Everybody here is going to have a disaster and these guys took out the language that helps the gentlemans time has expired. Mr. Chairman, we hear the rhetoric and the rhetoric continues to be an effort to try and characterize this as some kind of sad to the rich. On a go back again to the facts and here is what the facts are as the Tax Policy Center has laid them out. When you factor in the percentage of the plan that , ald be based on businesses whopping 75 of reduction in taxes paid are going to those people that are under 200,000 or less. Me see what middleclass i dont know what middleclass is in some places but right here , the purest definition of middleclass household encompasses those earning andeen 48 to 40,000 86,000. Including wages and other income according to the Tax Policy Centers analysis of the republican text repose of desk tax proposal Tech Symposium tax proposal. You might have a broader definition of what middleclass is and i think i could say in my own district where Hardworking Taxpayers as my friend in new york have a higher housing costs , so they characterize the middleclass from 86,000 149,000. That group, an average would save 100,100 annually. That is a real difference here. What my friends on the other side of the aisle when to do is tell you how they are going to spend your money. As opposed to you being that middleclass person between 149,000. D that is what a what they are characterizing as middleclass. You get a chance to determine i spend the extra 1100 each year. Outcharacterization is flat a misrepresentation to the American People about what is being accomplished with this plan. , so that, to take it same worker that i talked about struggling with his family will be able to determine what he wants to do with that 660 it into the year that will be in his pocket. Not in the pocket of my friends who are going to tell you how they are going to spend it. Maybe we will have some shovel ready projects. Remember how good that did for us. I think the facts speak for themselves. Chairman, i yelled back. Thank you struck the last word. I thank my good friend from pennsylvania for talking about the need to have the facts. Wouldve been great to have the facts here. Wouldve been great if we had one witness, one expert and instead we are going to have go back and forth arguments. From theike to Submit Department of Revenue Service in connecticut, the facts about the impact, even though the bill i understand mr. Brady, may i ask you a question . Are you going to be smelling an amendment later on . Will correct the bill further . We will continue to improve this bill. Will correct the state and local tax agreement . The gem and can review the amendment. We do not have that information and we have not been allowed any expert testimony. You cannot understand why we are upset. He cannot understand when the department of Revenue Services where not 6 but 41 of the deductions. Those would you have asked the state of connecticut to do is what mr. Selden, your college described of new york and the same thing is happening in massachusetts and new jersey and in maryland and in california and oregon and washington state. Coincidentally, the states but having said that, when you are doing to them is asking this regional shift of money, you are asking them to pay more. It is double taxation and you are taxing the success of professionals. Because of they have been successful in what they have done. And you are doing it without a single expert or public hearing. That is what we are mad about. We started out what we thought was on the same page with everybody saying, yes, we would like to see lower individual rates and lower Corporate Tax rates. Yes, we thought it would be a good idea that if they were both revenue neutral, as they were in 1986, and is mr. Neil has pointed out that they be distribution lee neutral. We also thought it was a great idea to simple five the tax code but this neither simplifies it nor is it revenue neutral. I would like to submit for the record the gentleman from connecticut, mr. Peter gross who talks about the impact on the Engineering Firm and what it does. There always winners and losers. When there is no expert testimony and when you just jammed this down because you want a political when a political win. Not a win for the American People, congratulations. You will probably get the win for the congress but at the expense of many American People. It is so disturbing to us on the side that not only and i quote mr. Brady when he was on morning joe talking about when queried about this will make up this money, this huge debt your placing on the American People, he said, you are right about that. We are not going to see this grow. This is phase one. The next phase is we are going to make these cuts. What are those cuts . Those cuts come in the way of cpi pit when the what are the aimed at . Social security and medicare. Understand why there is no expert testimony because you know what that would do to you. They are out to cut, not entitlements, because Social Security is not an entitlement, it is the insurance you have all paid for. So is medicare. It comes on the decode desta comes under the code of fica. Whose contribution . Yours. They are out to cut your benefits. I yelled back. Recognized. Strike the last word. While. If you make and people are watching this today, they are wondering what is going on because you know who the real losers are . They make and people because we are taking their money and we are using it properly and this bill actually starts to fix it and give it back to them. When you shake your head, let me finish the sentence because that is the problem. The American People are saying, i am working everyday and i dont have enough people i dont have enough money to pay my bills and i end up paying these taxes and they go to washington. You know put those books together . You guys did. The ways and Means Committee did. If you were here when these laws were being passed, everybody on you build this section of loss and we are try to fix the section by bringing it down to a simpler tax system. Dont blame somebody for putting those books together. Lame the committee for putting those books together. Yes, the committee. That is to put all those lost together. You guys keep talking about stuff and i really dont get it. These are itemized the ductions. These are itemized the ductions. Work . Alize how those it pays for as much as it can and what is left over, there is an amount and then becomes itemized the duction. These are not actual losses that are going away. These are itemized deductions. When we double the standard deduction on average, theres some districts like connecticut, you are right. Connecticut has a unique situation but on average, how many people when you double the standard deduction will itemize . I didnt report just doubling the standard, it was a combination thats double standard deduction and the itemized reductions that are still permitted itemized deductions that are still permitted. 6 of the people and he said the majority of those people are primarily wealthier people . Past income this to be should. This bill is once we do what this bill does, we are affecting people were not able to itemized or get the opportunity or get his credit and now they are going to get an opportunity to save taxes and that includes state and local income taxes, that includes casualty losses and interest on homes with mortgages. If we are going to keep talking about this, can we at least make sure we are talking about it 6 . Except for some unique situations. 6 of the make and people who are the more wealthier americans. That is the key here. It is frustrating. People back home have been looking at this and saying, can i get a break . I am barely making ends meet. Can i get a little break. Im paying too much tax. Is being wasted in washington. It is clearly being wasted and how do i get some help . That is what this bill does. We can keep talking about all the wealthy people who are going to be up to itemized but in the end, i think what we need to Start Talking about is the hardworking american taxpayer and making sure they are getting a little more takehome pay, so they can make ends meet and said little bit of money. I i think my friend mr. Pastoral i represent Police Officers and dosing people. I represent all the same people. Ho will get the tax break 94 of these people will not be itemizing on the average. Weve got to start thinking about those firefighters, those Police Officers who now will have an opportunity to bring tax money home. I yelled back. Chairman. Ou, mr. It is fun watching the opening bid of the process my friends have been backing away their proposal as soon as they first quote it. Now we are finding other things, we will not know until it hits the floor but as a practical matter, what is clear is they are focusing benefits on those who need it the least in this country. Very large corporations, very wealthy individuals, Hedge Fund Managers and athletes and professionals who are going to pertain to be Small Businesses and be up to exploit a new loophole. What is clear is they are friends and the republican side have established up to a 1 trillion extra debt that will be taking on and it is higher than that because of several of my colleagues have pointed out, you pay interest on that debt. The 1. 4 or 1. 5 is going to be over 2 trillion and our friends points out if theres a 1 increase in the historically low interest rates, that is good to add another trillion and a half. I remember many of my friends used to be upset about the deficits and we are wiring in a very significant dead low. There is an additional fact that concerns me, if you really wanted to help. To low incomee people, we could Work Together to fashion things that could do that. We have republicans in the senate who are willing to expand the earned income tax credit and make it refundable, to deal with the 35 of the people you are your proposal leaves out altogether. Americans. This was a proposal that came in the reagan administration. It is not partisan. If you wanted to work with us in the grand tradition of this committee, and i am wearing my weight and committee means both my ways and committee means bowtie. I found a way to cut it down and turned it into a bowtie. We couldve done that. There is some interesting proposals here dealing with what happens to the mortgage interest deduction. You acknowledge that the benefit is focus on people who needed the least. We could have crafted something that would be acceptable to the homebuilders to the realtors and help americans are struggling to deal with housing. It is not the most wealthy. You are breaking a commitment with the Wind Energy Industry that a number of us worked together on a bipartisan basis to have a fiveyear phase out and by the way there are more jobs in wind Energy Running coal and petroleum. Good family wage jobs, made in america industry and the industry step forward with some 50 billion because congress, this committee included, worked out a compromise. I think it is the only provision that you have included that is retroactive. Why couldnt we have had a hearing to find out what that is going to do to the wind energy in texas . In the upper midwest . No, you pulled the plug on it. Mr. Kelly and i have been working on private activity bonds, pretty easy way to invest in infrastructure, gone. Did we have a hearing on why they should be sacrificed so you can concentrate benefits for those who needed the least . I dont recall anything like that. It goes on and on. A number of you are from states that have stepped up and raised the gas tax. In south carolina, it was passed over the governors veto, over half the states. If you have a couple of weeks, we could put together a Broad Coalition of people who are going to come in and say, invest in american jobs, rebuild and renew america, raise my taxes, the Trucking Industry will say. Engineers, contractors, unions. We couldve done this and bring people together, rather than divide them and add to the deficit. We havent had those hearings. Instead, we come in and get something dropped on us that will continue to change until it is on the floor of the house and it is going to be changed again in the senate because a number of these things are nonstarters. Sadly, it didnt have to be this way. If we remember the traditions of kit traditions of this committee and what happened with the last time this happened on a bipartisan basis with president reagan. I find it unfortunate. Miss one or ski, you are recognized. I am excited about being here. A lot of gloom and doom but i waited 11 months to beer today. To deliver tax cuts to middleclass families. We all know in this room that the tax code is broken. The American People know it. They are reminded every day they look at their paychecks. Im excited we are taking action to help hardworking families, farmers and workers in indianas Second District this day. Scores of hearings and bipartisan working groups have led us here for families we are delivering tax cuts and tax cuts so simple you can file it on a postcard. We are enhancing the Child Tax Credit, encouraging people to save for retirement, streamlining 15 different educational tax incentives to a family doesnt have to dig legalese0 pages of irs. Were doubling the standard direction to semper fi the tax code to allow hardworking hoosiers to keep more of their money. In my district, about 80 of the filers for the vast majority of people, they can keep the standard deduction and they can keep even more of their own money. Many of the remaining 20 who itemize will be up to save stress by taking the standard deduction instead appeared i have been traveling in my district for 11 months with this postcard. None of my constituents are not excited about filing their taxes, there excited about a simple process. Hr one helps the manufactures in my district. These Small Businesses get a lower rate of 25 . Family businesses passed down for generations wont have to worry about the estate tax. We are repealing it. This bill makes america for more competitive country. This antiquated tax code discourages profits, companies from ringing back money to invest here. It discourages company from locating facilities here. No more. Hr one mix it more checked it for companies to make new investments here. It ends the lockout affect. Mr. Chairman, theres a lot to like in this bill. I know we have a long week ahead but im excited to work with you and my colleagues as we deliver tax reform that allows all ships to rise. Thank you and i you back. Thank you, mr. Chairman. What i think youre hearing today in this rancorous discussion is a whole lot of release of pentup frustration about the process that has brought us to this point. It is unfortunate because it didnt have to be this way. There is great consensus here in congress that 31 years to take a serious run at the tax code is too long. It was bipartisan agreement with the overlying concept to try and simple fine simplify the code to make it more competitive. But also to make it more fair for my working families back home in wisconsin, my Small Businesses, my family farmers. What we were hoping we would see is the redo of more to go down economics that have failed in the past. Tax cuts at the top for the most wealthy, expect that to lift off. We have been down this road before. What is troubling about this is that in order to develop consensus, this committee has to do that work. That is having proper hearings, having proper discussions, proper vetting, listening to the people back home. Unfortunately, too many of my republican colleagues have chosen not even have town hall listening sessions anymore. What we ought to be doing is running toward the criticism, finding out what people are concerned about and other things that congress isnt doing and run to that criticism to find out what we are getting wrong and to learn from it in to adopt those principles into the underlying bill. None of that work has taken place and we have been completely shut out from this process. It didnt have to be this way. I bipartisan muscles have atrophy to such a state that we are pathetic shell of what this committee in congress should be looking like the American People. It is all behind closed doors. Dark knight legislation. Topdown, directing everyone else to follow line with their respective parties. The great loser is the American People who should be out in front of us testifying, raising some alarms are telling us, you may want to think about this or the unintended consequences about that. We had none of that leading up to today. Now we are flying in the dark. Open theres a safe landing zone out there. We have been down this road cuts, 1981, reagan tax the 2001, 2003 tax cuts. It didnt materialize. There is very little Economic Data that shows of your plan you are going to get the type of growth we need. What is different this time, and i asked the staff to put the 2001, is that from 1981 to to 2312 we are today, we have run out of time. We dont have the luxury of making a huge fiscal mistake and having time enough to recover before we have 70 million baby boomers who are beginning to start their Massive Retirement, 10,000 a day, inching Social Security and medicare. We make that fiscal mistake today and theres no time to recover. In 1981, our debt to gdp ratio was 31 with the reagan tax cut. That was followed by nine subsequent tax increases under president reagan because of the exploding budget deficits. Theh tax cuts, 51 2003 tax cuts to 51. 7 today 110 at once 3 at we cannot take the scandal. We know future congresses are going to be hardpressed not to extend those out. You are talking 2. 4 trillion of Additional Debt over the next 10 years, just when the demographic time bomb is going off in this country. No chance to recover. What will be in jeopardy is the longterm solvency and security of Social Security medicare. That will be next. Under your own budget resolution, you call for 1. 5 trillion with the cuts to medicare and medicaid. We know where you guys are going with this. If we have exploded deficit facing us and that is unfortunate because of history is any guide, it is that where they may have been some time to recover from physical mistakes in the past, we have run out of time with the demographic explosion, Massive Retirement that is taking place today. I ask my colleagues to consider that. Stated thatman, you the 6 of itemizes in the upper half of income. The middle income ranges from. 43,511 to 72,001 the average is 56,000. You think people with income over 56,000 are wealthy . That is the middle income point. Fromu think that taxpayers the mortgage interest reduction are Still Available likely will make around 56,000 . We better get our number straight. Taxes will rise for many in the workingclass, all for the richest americans. The analysis came out at 3 35 this afternoon. 28 will see a tax increase by 2027. I heard from a constituent today in my district, his name is david. He lives in fort lee, new jersey. David is a 50yearold Building Trades union worker who was injured in a car accident in 2008. We are going to get to you will begin to the aca. You cannot overcome the stories. As a result of his injuries, he can all of the work but collects his pension and disability. His wife works for the post office. They have no children to share their home with his elderly parents. They currently rely on the medical expense deduction for his medical costs that can be upwards of 12,000 per year and they pay more than 15,000 in property taxes. With the deduction for state and local taxes including the full property Tax Deduction, they are able to just break even each year. If this bill passes, david and his family will lose the ability to deduct as high test his high medical expenses it all of this state in sales tax and a portion of his property taxes and in the state of pennsylvania, you can ask the local governments. You can tax the local governments. That adds up to more than 15,000 he can no longer deduct. Only of this bill passes, he will have to move out of his home in fort lee apart from his wife until she can retire. Look, youre tearing families apart. I got a lot of these stories. You are going to listen to them somehow, someway, driving people from their homes. So much for middleclass tax relief. Why should these hardworking families who have paid their dues have to make that choice . David told me, what kind of middleclass tax break did they just give me . This is garbage. If they pass this, it will bury me. Racenly will this bill of taxes on a family like davids, it will hurt home values. I am tired about the high taxes. We have a densely populates state. Every state has a difficult or. Just has a different culture. We are throwing money out, just tax the people. That is not what we do in the state of new jersey and we are far from perfect. You better take a look at your own treasury. Over home prices could cause a recession in the new York New Jersey state. Remember what happened in 2008 when home prices fell. Go back to you history. We cannot afford to go through this again. Especially because of selfinflicted wounds. The tax code is right with loop ripe with loopholes. Corporation has 250 book which corporation has 250 believe dollars offshore . You tell me one place in this bill where you are going to catch up to this people and bring them back here . All of your foo foo talking. Please read what you wrote. I know it is hard to keep up because you change it every day. If youre changing it every day, startut at least read see so you stop putting foo foo forward. Thank you, mr. Chairman. I do have a question. Previously, a few minutes ago, there was a rather vigorous criticism of the bill that the bill would be passed so late in the year. Do the changes in the bill applied to 2017 . Are what they apply to 2018 . The Effective Date for the provisions is beginning after 2017. It would be in effect 2018. A notable places not the case is the Capital Investment provisions. Those of the effective on november 2, right . They have Effective Dates as of several days ago and in a couple of cases, a couple of weeks ago, the purpose being to shut down investment activity while the Congress Deliberates so taxpayers could proceed with making an investment with the knowledge they would be better off if there were a change. Thank you. Would it be your analysis that a broader based portions of the bill would not take effect until tax year 2018 echo what those changes 2018 . On. Hose changes are 2018 the average taxpayer, how they might make purchases and other investments, they would be caught unawares or anything . They would have the opportunity to put forth their spending. Yes. Most everything is perspective. The legislation directs it that withholding tables be revised to reflect the new standard deduction, new tax bracket rates so that essentially there would be help for wage earners in withheld. Hat is thank you. I appreciate the analysis here. I appreciate the fact that we have the opportunity to Exchange Ideas and i hope that we can truly focus on the real numbers that are out there. I have heard very characterizations of a two edge of 50 a deduction as somehow being better than actual troop reduction in Tax Liability for exceeding what that deduction might offer. I hope that we can keep the exchange of ideas going here and stick to the numbers that we know are there. Hopefully end up with much better policy then we have had today because we owe the American People much better policy than the broken tax code that is in place. I yelled back. I yield back. Mr. Chairman, strike the last word. This is not a tax reform bill, the syntax sham that will this is a tax sham that lead to higher taxes for people in my district. Specialinterest bill raises taxes on American Families to benefit corporate special interests. This bill is the mortgage deduction forcing middleclass families to pay more. This bill creates a new tax on homeowners when they sell their home. This Ryan Mcconnell bill eliminates the deduction of local taxes which means every homeowner experience the problem taxes on taxes on the their taxes and, in my district, households claimed deductions for state and local taxes and the average is 9,000 in my district. His is not just for new york this is many states. Bluelicans called them states, but i called them new york and new jersey. My friend was defending his vote on a budget resolution and some of his colleagues voted against that and i guess that they got it wrong. The only person who got it right was against. Est voted all the republicans voted against that resolution because of the provision with the deductibility of state and local taxes. And the cruelong breakis the viable provides tax cuts for corporations that will be allowed to keep this for their the middleclass guy and gal gets to keep theirs. This bill is the american nightmare. Dont take my word for it. The association of realtors predicts that people with incomes between increases and an a drop of 10 in home values. It is not just the homeowners who are hurt from this bill. The renters get crushed and this eliminates Affordable Housing stock. Of 17,000 to a loss Affordable Housing units. Nationwide. D more there is not an Affordable Housing crisis in this country, but the taxes on people will raise families with more than one under 18 sees their taxes increase in students can no longer deduct student loan interest. This will cost 40 billion and affects millions, including in my constituencies. The eliminations of the deductions they get to provide to students. They are cutting the tax break for teachers. It was not just this will. Forliminates a tax credit the elderly and the disabled seniors and it helps families who have a loved one and need to go to a nursing home with almost 10,000 of my constituents feeling this in queens and the bronx. Republicans say that only one in three itemized. It will not affect many people. Hellbenty they are in eliminating the tax when it only hits to a vote of every thousand americans. Allows for the off and it rewards and they that offshore are competing and where do you think the jobs will go . They will only be 10 overseas and on and on and i do not have enough time to say all that is in this bill. This is a sham. Thank you. Today is a historic one. Members of congress have made a case as to why America Needs a fairer tax code to help with Economic Growth and revitalize the economy and create jobs and put more money in the pockets of people. The tax cut and jobs act requires us to keep them in mind i told youis debate all a story about my dad who likes me that we have a crazy tax code and you get taxed when you earn, save, and when you die, if you have enough saved. Now, i know you on the that i will be leaving this great body in january and it was not easy. Do for thisat we committee and the members we do it for. When i was selected, this was a great honor and i have been fighting for the priorities of the people in my district. This has been a great and remarkable and humbling honor. Where we all have the responsibility to work for the people. Issues like the tax code, health welfare. Ial security, bedes that americans go to at night and think about when they are waking up in the morning. Tradeting free and fair agreements. I am proud of the work that i have done to help the lives of americans. Thank you. I have enjoyed working with the onrtest members of congress both sides of the aisle and the staff who are the best and the brightest. I have been fortunate to build relationships on the other side of the aisle and i will not mention any of you because i do not want to get you in trouble. Bill, i will mention. We have become great friends. We dont have the same philosophy, but i know he has my back and i have his. Of all of us working to find Common Ground and we have done that on many issues. They are not always covered in the media and they are not the biggest issues of the day, but they are important. When i became a ways and means member, i could not have asked for a better assignment. Work work is not done yet and i look forward to a continued discussion and there are other issues we have to deal with and i look forward to working with you and it has been an honor. God bless you. [applause] let me just say that the committee is a better place and the congress is a better place are betterstituents served because you served in this seat. Think it is safe to say that he has been a good friend and the description of the ways and Means Committee is perfect and that is what many of us felt. Earnis a seat that people in congress. You have the debate echoes back and forth. Same experience that many of us have felt in families that are only one or two generations off of the boat. Let me just add another word. And thereoldiered on were many Family Matters you had to attend to and all of us have tried to wish you as well as we i had a briefink ime working with you and think that all of us have the greatest respect for you and your determination to carry on, even when there are family challenges. You. E will miss way, we will miss you and your bluecollar roots. Lewis. Mr. Chairman, i want to thank you for your friendship and your years of service. I had the opportunity to meet your children on the floor and they are wonderful. And they aretiful really in your image. I ever saw you as the chairman, we would call you mr. Chairman. We are going to miss you and i hope we can get together and do something together. Thank you. We will have plenty more time, mr. Chairman. There is a lot of admiration for you. Mr. Pascrall was hugging you and he will have to deny that someday the committee is better off with you. If you wish, you are recognized to have the last word. Thank you. It is always difficult to say , especiallyomeone when you are doing something you like to do. This bill we are discussing and debating takes hundreds and billions of dollars away from the hardworking and struggling families and lines the pockets of corporate and special interests and the most wealthy in this country and real families will lose under this bill. By exploding the deficit, this medicare,ers cuts to medicaid, other programs, makes andege costs increase increases student loan origination fees and makes it difficult for those who have student debt to pay that off speciale corporate interests can write off all of their expenses and enjoy it the tax benefits for the operating losses and seniors get the ability to write off those costs and they lose the ability to claim casualty losses and teachers lose the ability to write off the hundreds of dollars spent to help students learn and students lose the ability to write off the student families losetive help with high cost of adoption. Areas living in highcost lose vital assistance and charities lose benefits that encourage taxpayers to give and corporations can do duct state and local taxes. To 40ll doubles taxes million middleclass households are time when baby boomers needing the most support and this build slashes tax benefits to cover increased medical costs and the expenses of the elderly and the disabled. Help andnments should not harm people and strengthen the economic wellbeing of the middle class and not the most secure special interests and wealthy types in the country. The Tax Policy Center estimates that the current plan will save between 50 and 450 in taxes a the average is 120,000 year and he gives almost half of the individual tax cut to households earning more than 500,000 and one third of the million. S earning one districtn income in my 500,000. And not those people in illinois and and theaces will lose republican priorities in the bill are shameful. Trillions for corporate interests when we should be creating jobs by repairing infrastructure and roads and investing in rural and urban areas and we should make sure that Business Developers get incentives to reclaim communities in neighborhoods. I wish the bill was what it is not and i wish that it was better. Hope to see some changes so that i dont have to characterize this as robin hood poorverse, taking from the to give to the rich. I yield back. Thank you. Interesting to listen to this debate and people get saturated in the tax policy and they listen and others would listen to the discussion and say that they have to be describing Different Things and they cannot be describing the same thing and i have been thinking about this in my mind turns to my wife who is in oil painter and living with an oil painter is interesting. They tend to look at things holistically and in totality. They do not look at a narrow thing and say that is the entire painting. And do a creation and they look at it. If you look at things in group withthere is a a disadvantage that comes. We propose not doing these things in isolation. It is interesting. Nobody defends the status quo and we propose stepping back and creating a tax code for the entirety of a life and doing that rather than creating a tax. Ode for different episodes the observation of mr. Smith is is that better than a credit that is more robust and inclusive . Obviously, the credit is better. It cannot be that one person is right when he says that everybodys taxes go down in a and ittive statement cannot also be true that this is a raw deal for the middle class. Dot i am encouraging us to is to be real and say that we should look at these things in totality and resist this intention to oversell and to over characterize. What we have is the Inflection Point and it is an opportunity for the community to drive the debate towards a transformational moment and i take up theseto amendments and we discuss those in the coming days in the context of a larger portrait. I yield. I would like to ask unanimous consent to have letters from a couple of the cities that i represent that were the epicenter of the fires of california read into the record and ask that you fix the problem in the bill. It sounds like your approach isnt different from the amendment that we are going to see today and it is an amendment that we have not seen and we are not going to get to see it and that is why you hear from our side of the isle that it would be nice to have a hearing. I understand. This is about the casualty losses for those who itemize and not be ask that we expunged from the law. Foro they support help those who do not itemize . That is what i encourage us working on. It is a proposal that we hope families with wildfires. Do you want to work with me . Is this the amendment about . Oing a permanent relief those are brilliant members. If you would like to Work Together to provide relief for wildfires, that is good. The letters are approved. You. Ank i feel like we should all agree the tax code should reward companies that keep high skilled jobs in the United States and they are the type of jobs that support middleclass families and the last thing we want is for these just to get swept out of the u. S. What we are marking up does nothing to close the tax loopholes that ship jobs overseas. Concerned and this would incentivize outsourcing jobs and create the competitive disadvantage. I am also concerned that it make other countries lower their corporate rate and create a risk to the bottom or create an Export Processing zone and all of that would be at the same time as benefits are being slashed. This eliminates the state and and, in myeduction district alone, that is 85,000 families that may no longer be able to claim a deduction. Of the families taking a state deduction, less than 200,000 in Household Income relying on the deductibility to determine the affordability of their homes and the average value of the deduction is 18,000. Forritizing the tax breaks the millionaires and enabling outsourcings of jobs over helping middleclass americans families dontnd expect a handout, but expect us to stop shifting the tax burden onto their backs and expect us to do this without hoping that the froms trickle down. Families deserve better than to be lied to. This gives with one hand, it takes away with another. To getserve a fair shot ahead and this bill is nothing but a lie and all of the benefits go to the middle class. And thehad example people who benefit the most are the people who need the help the least. This is what the American People want to see pay their fair share. Americans are sick and tired of watching the wealthier get wealthier and they get to the off the bun if its the benefits. Tell front about it and the middle class. Sittinge four people down and having lunch and agreed tos that the bill. We allow multinational to onlys only pla and the rest is taken out of families and businesses. Weugh of this farce that grow the economy out of this debt you create with the tax cut to the wealthy. Studies no evidence and show the trickledown effect does not trickledown. Lets be honest. Giveaway and you can run a victory lap and say you got a legislative accomplishment of freezing the democrats out. Do what is right for the country and it would be nice to see my colleagues extend a hand and take our proposal toiously and you continue persist in going it alone and you craft policy that is ad for america. Be honest about that. Thank you. Elimination of state and local tax reductions is a giveaway to Corporate America notthe deduction was recently purchased by a lobbyist. Been a federal income and localstates production and that was put in place to protect people. For the record, in new york, is 9 ofocs and taxable income. Lose 9,000. 50,000, you would lose 4500. Financehis is to cutting the corporate rate. Nobody pays 35 . Is 18. 6 . Ate tax we are told that this is being done to boost the annual wages that is absurd. If that really was your wouldnt youy bypass Corporate America and give workers the tax benefits every year. Itt will increase wages and would increase the Economic Growth. Lets bypass Corporate America and give this break to the workers. Businesses american have nine point 2 trillion in cash in treasury bonds. If they want to give a race to workers, they have the cash to and youthout a tax bill have the american businesses who and 150 need a tax cut 10 hem pay between 0 and yearrporate taxes every and 50 american corporations arew their customers and have negative Tax Liability, getting a rebate every year. It iss a scam and intended to take money from Middle America and give it to Corporate America without astification and there is not credible economist or economic that tank that believes this tax cut to Corporate America will increase growth nd the tax cuts do not pay for themselves and never have. Not in Human History or anywhere in the world. In the billrance about financing infrastructure and, based on any objective spend 2 we need to trillion and the last watch it was going to spend 200 billion over the next two years and we just spent that in the last 10 years to rebuild the roads and the bridges of afghanistan and and this could materially increase the Economic Growth and put people to work and these jobs cannot be outsourced. Scam that will a not produce the explicit objectives. You are recognized for the last word. My friends on the other side of the continued to say that this is a tax cut for the rich are that we are taking money and giving it to corporations and the joint Committee Says that this is a tax cut for americans and the Tax Foundation says that and thesave 1200 average Small Business, 3000. The Washington Post says that ins will result in a tax cut every income category for 93. 5 of americans and they say that there is no credible evidence that will happen and that is fascinating. Guess what . We have tried it your way and you said you had the congress and the white house and you piled on the taxes and the guess what . And for the last eight years, we did not have a year where we reached the average growth in gdp. Not one year. President mp has been and the last two quarters have been over 3 and this plan will increase gdp and we have had economists testifying to that effect in the room. Goes up, we add the revenue and the jobs and restore American Opportunity. Regulation have cost the country opportunity and we have left a generation behind because of your policies. Enough and we need to restore this land of opportunity. Encouraging companies to offshore . That is the opposite of what was designed to do. Jobs backing American Home and we need to focus on the facts and the facts are that the American People have had enough leftovers ofation, the last administration and we want to move on to a competitive economy and we want our children and grandchildren to have the same opportunities we had and restore america is the land of i am proud to be associated with this ill. What a great opportunity we have to make real reform for real people. That. Ill does not do we still have our work cut out for us and this would impact middleclass families but taking away personal exemptions and leaving others with higher taxes and it negatively impacts businesses and ensures that the vast majority will see no benefits of tax rate reductions and that is what it is opposed by independent businesses and it does nothing to address the skills cap and our workforce. Know important that we this bill does nothing to help that and it negatively impacts communities. That this will and thehe Capital Private activity bonds make Capital Improvement possible. Billionsredit drives in private capital to the thesessed communities and are the Building Blocks for main they would do and away with them and it would impact their ability to encourage economic development. I hope they view this is the opportunity to improve this bill and they have the inputs the American People deserve. There is plenty of room to craft a bipartisan bill and the current tax code is outdated. It is too complex and does not do enough to support working families and a exacerbates existing disparity. On the business side, it does not do enough to make sure workers are prepared for jobs. I was excited to be on this committee because i wanted a seat at the table for the people of alabama who are striving to be in the middle class and the tax code is supposed to be reflective of our values and should pick winners and losers and the winners are the top 1 and wall street fat cats and the losers are the middleclass and as americanas well striving to achieve the dream. Value andthe people i i know that you do. I am sure that you have heard the adage of it being better to the table than to be on the menu and the people i represent are on the menu. The people i represent deserve a seat at the table and deserve to have their voices heard on tax reform. Drafted under cover of table was reserved for republicans only. I dont believe that is what the , as i ammeant and closing, i think what the first africanamerican elected to congress said, if you do not get a seat at the table, frank a folding chair. I am here to give a voice to the people i represent. Arer. Smith, you recognized. We will ripped out the broken tax code by its roots. This is about wages and paychecks and it is about keeping more of what you earned with the Hardworking Taxpayers quog punished by the status and they made the tax code simpler, fairer, and flatter. Bill, we cut out the lobbyists, the loopholes, and indouts and reinvest missouri. Forle are being penalized not having an army of lobbyists advocating for them. Today, the committee is considering a bill to help the taxpayers keep more of their money. The first 24,000 would be taxfree. You get to keep it and you get to determine what is best. This will also help family farms and eliminating the death tax. As a matter of principle, it is wrong to tax people are dying. Triggered when a profit is made. The familyespects farm. In my district have the Second Lowest Median Income and i am for this bill because it represents a pay increase to those families. People, a family of four will see how tax cut of 5 . Other places in missouri deserve to keep their paychecks and this bill ensures futureve money for the and it is time to make the tax code clearer and fairer and it economy moreke the healthy and it is time to see wages rise again and to give hardworking americans more money. Lets get to work. I yield back. Believe the Washington Post was brought up and it says that the taxes will go of for many in the working class. We are having an important conversation today. The legislators have targeted the most vulnerable among us and children and those victims of longterm illnesses. Aung people trying to get piece of the American Dream under the burden of debt and we know why they have hidden this from the public. Tax reform is hard and it is harder when you go alone. Instead of bringing the asocrats into the process americans, the republicans have made his cynical tradeoff and hurt the people who need the help the most. Tax reform should be about coming together and reflecting our values and i can tell you ,hat a single working mother not a teacher, not a family caring for an aging parent, has ever told me that this means corporate cuts. They know it will not trickle down like the republicans have promised and they know that there is nothing left but the fumes at the doorstep and they do not pay for the medical expenses or the basic necessities the people take for granted. Constituents reach out to this office terrified and i can tell you that they know better than the idea that the standard deduction will be the answer to everything. This is not an answer to a teacher paying for a mortgage while paying for the expensive Cancer Treatment and it is not an answer to seniors or young families starting out to get homes while covering childcare. Up. Math does not add if you have to pay for longterm the, what good is deduction . If you are paying mortgage and Student Loans and expected to be adopt, what good is the standard deduction. You can deduct more. There are people looking for fairness and relief and they are bowing to special interests and againcal expediency yet and reflecting the worst to the citizens who sent us here to look out for them. A Supreme Court justice once pay that taxes are what we for Civilized Society and the purpose is not to award political friends or sticking it to the blue states, it is a function of government and funding a Civilized Society. The bill undercuts the notion of the and it is an attack on middleclass built on lies. Deficit and puts it on the back of children like a shortterm sugar rush. , thenot accept this and American People will not. Thank you. Here today and i have taken to brakes and i have heard my colleagues argue for the status quo over and over and paint the bill in a negative light to avoid the reality that this is needed for the middle class and what we are marking up would make children see the taxes cut. I look at my district and the numbers tell a similar story and the average family will see their increase their taxes decrease. That belongs to the hardworking constituents that the government will not take from them. The bill not only allows my constituents to keep more of the paycheck, it puts us on a path to Economic Growth and moves us towards a territorial system and gets rid of the lockout that discourages companies from reinvesting their earnings in the United States and our bill provides relief to Small Businesses by getting them out from the top personal rate and and, for a lower tax the first time, our bill as they pay off the bill. Like to talk about the 1 with the estate tax, but my constituents know this tax is an assault on businesses and carolinians who do not want to get taxed again. They are glad to see that gone and i am proud to have worked on to myo provide relief constituents and businesses in this bill will bring 29,000 jobs to North Carolina and i didnt have to as mikehe status quo forings have been doing five hours. I yield. Chairman, we are supposed be marking up a tax bill to benefit the middle class and this is a bill that benefits corporations and these are not just my words. The only priority that trump and republicans could agree on was ont this cuts taxes corporations and the middle class is an afterthought. Andrest is hypothetical depends on trickle down economics. Families will receive a credit of 300 and that small credit expires after five years. The tax cuts for the corporations are permanent and the largest tax cut goes to corporations and they get their taxes slashed. Effective taxthe rate is 18. 6 and many deductions and loopholes are preserved by this bill. Corporations will save trillions. Now, lets take a look at what the individuals get. It is not trillions and video can to keep the deductions the weather corporations do. It is ending the deductions and republicans are able to pay for tax cuts for corporations. , they haveike mine been able to deduct state and local taxes for over 100 years. It is part of the calculus in voting on state and local budgets and, in california, local taxpayers have been able to take an average reduction of that and thee republicans are ending that and forcing individuals to pay higher taxes or take a lower standard of living. It is not that republicans question the value. They keep it for corporations. There are also deductions for medical expenses. If you are receiving care at home or have a child with a disability, all the becomes expensive. Also getting expensive is the College Degree and you earn a and commitand a job payments on thats and you will have to figure out how you cover the cost of that loan and republicans are turning to foster care as a way to pay for the tax cut for the rich. This is ending the adoption tax credit and that was used to encourage adoption. Why are the vulnerable foster care children being denied . Hiltons a break to paris and ivanka trump. Among those being punished are immigrants. People come here to contribute and republicans make it harder for them to get the earned income tax credit or the Child Tax Credit. Not even the Small Businesses get the help in the tax bill. Republicans are using this and that is what 90 of Small Businesses play pay. The real explanation for the passthrough rate is to avoid they classifynd themselves as Small Businesses. Individuals get corporationsabout and, you talk about the cost and with a cost in lives opportunities denied and families hurt. We will begin with the amendments and the clerk will distribute the amendment and we will suspend while the clerk distributes. This is your amendment. We have not seen it and we dont know the contents. Order and ipoint of assume that it is in order. The point of order is reserved. The clerk distributes the amendment. Could i ask you i would just like to ask you a question. What is the nature of the question . We were just reading this over. Gentlemen may seek recognition to speak on the amendment. I just youll have plenty of time to be able to debate this tonight. I am pleased to offer this amendment. The amendment makes refinements to the overall package that delivers tax relief to millions of families and help compete around the world. The amendment continues to the year 2022 exclusion from income for employer to find it. Mployerprovided health care the bill will help families cover these important expenses. The amendment includes additional tools that will help protect the integrity of the earned income tax credit program, an Important Program but under the status quo creates too much fraud. ,ith respect to the excise tax of educational institutions, in the amendment focuses its application within with endowment assets of 250,000 for students. This ensures that private endowments placed on equal footing with private foundations. The amendment ensures change in the bill do not disturb the characterization of tax purposes of income earned by songwriters when they sell their catalog. In addition to the substantial relief for Small Businesses, the first time our passthrough business along main street have received significant tax relief. The amendment includes provision to ensure that employees that employees can share in the success. Better recognizing stockbased compensation for tax purposes. The amendment includes a holdingn that imposes period requirement of three years with respect to gains on a carried interest or Investment Real Estate business. The amendment better tailors the bills erosion rules to circumstances involving attentional for tax avoidance. It narrows the focus to situations where the affiliates have high returns. It mitigates potential double taxation without really pushing the jurisdiction thats without really question without relinquishing jurisdiction. More broadly, our work to fix americas broken tax code will continue at every stage. Throughout the path of this bill from todays markup to the president s desk. I would like to take a moment to reflect on what is not in this amendment and why we are not including various health tax measures as a part of our tax reform effort. The support on our support of the aisle on full repeal of the job killing and other excise taxes that increase Health Care Costs for consumers that will include thats that were included as a part of obamacare. Member, as a ranking know, we have been working with them over the past month we are working on common sense, temporary internet relief or of these taxes to be acted on in the house before the end of the year. That includes authorities such as relief for the medical tax. The Health Insurance tax championed by kristi noem and and the tax of overthecounter medication. As such we will move to these Important Health policies separately after conclusion of our tax reform efforts. I will note that this is the not last effort to continue to make further improvements on the base bill. As we work to deliver more and targeted relief to more businesses working with organizations and working to consequencesended of certain insurance provisions and working with the council and others in that regard. Mr. Chairman would anyone care to be heard . X i hope you would i hope you would agree that given the fact that we have just seen this this onlyrst time, compounds the education issue. Is there a score on this amendment . No. As is tradition in the rules of the house committee, scores and i provided on individual amendments. I would hope next line the base bill may substitute is within 1. 5 trillion reconciliation structure the committee has been given. I would hope we would have an opportunity to that this issue for recess on the side or give us an opportunity to go through this. At minimum we would take questions from members on our side as they try to parse what is happening. After 5. 5 hours of discussion about a previous piece of legislation. Just as the minority does not vet or deliver their amendments weus during this process, take these amendments as they are offered. Fully debate them and vote on them at the conclusion. Mr. Airman, chairman, if we had had the opportunity last thursday to see this incorporated into the provision that is going to be presented to us, perhaps we could have a different discussion. The rush of anticipation was like a monsoon as people rushed over to seek the document. Here we are receiving the document for the first time. I hope there is ample opportunity for us to air this document in front of everybody. This gentleman wish to continue to be heard . I think mr. Levin would like to address the issue. Would like to go down our regular order again. Mr. Chairman, i will wait il mr. Levin, you are recognized. This is disgraceful. I have been on this committee now for 32 years. Was ancame here, there ability to work across the aisle on many things. That was true of the tax reform bill the year before i joined. Mr. Neil and i and i dont know if anybody else participated in the discussion. This is the opposite of bipartisanship. When we presented amendments, it one and itne, one by isnt a whole flock of changes. O a bill we dont see these until the last minute . This is been the worst kind of process. Your break about this is the first time in three decades . In you are going to bring these amendments of and you are going to bring these amendments up . How are we going to have a discussion . Are we going to discuss each one of them one by one . Are we going to be up to ask mr. Boss told questions . I have been working on interest on many years. We have been working on face erosion issues for a long time. Well discuss these we have discussed these. Base erosion is vital to discuss. 90 just throw this at us. Without any discussion with mr. Neil . Authoritarians . You just throw this down to us . This is utter disgrace. Dont you have enough confidence to your own position to present these in advance to us . And let mr. Ball told discuss mr. Barr told discuss each of these . You are smiling. He stop smiling. This is more serious than that. Could the gentleman yield . So as chairman of this know youou , not byy on every bill giving it to us in advance for letting us look at it but in the amendment process. That is nonsense. On the aca bill i believe the time is mr. Levens, mr. Chairman. Xp is a process is very different. He didnt like the bill. We didnt throw these things that you. We had hearings. We had meetings. We considered this seriously. He didnt like what we were going to do but we didnt just throw things that you at the very end. You had ideas of what was nonsense you had ideas of what was on the bill all along. 90 just throw this at us and you now youroduce just throw these at us and you need to introduce these so we questions. Barr hold you make a mockery of this committee. Why are you doing this . Why are you doing this . You dont even talk to mr. Neil as a Ranking Member and give this to him a day in advance . What are you afraid of . I haventmined finished. Gentleman controls the time. Are determined to pass you are determined to pass a bill because you havent done anything all this year. Your desperately looking for something to past. It is that blind leading the blind. The pipe pepper i dont even know who the pied pepper is. Whether it is you or the speaker. This is a disgrace. Are you going to have each of these amendments taking up separately . Each of these amendments and by custom will be offered and doing your five minutes, youll have the chance to question mr. Barthold about this. Exit each of these will be each of these will be this is the amendment by mr. Brady of texas. This is a separate amendment. With all these pieces . With several provisions in them. Ask why take them up separately . We can ask mr. Barthold. Total disgrace. I know this is the moment where the outrage is supposed to curb. I ask that your remarks be taken down. For heaven sake. I did not question your i did not. I ask that your words be repealed. Mr. Chairman, i request that mr. Levens words be taken down to your motives. I ask that your words be taken down. I may, we can go into all of that if you want. Or, as you know as the former chairman and has been occurring about the session as well, the minority offers amendments, multiple provisions without our being able to see it in advance. One at a time. We havent funneled a lot of these amendments at the most critical bill. My point is this, we will take up this amendment, we will have plenty of time to question mr. Barthold, will go through this whole line over the next hour or more or have an opportunity to delve into these issues, all of which are well known and continued the process. Does anyone else wish to be recognized . Would you consider a recess so we could strategize our response . No, we will follow the rules of the committee. Just like we dont ask for recesses when you offer amendments to us. Procedure is seismic and its ramifications. We need an opportunity to that what our response might be to the proposal. That we i recognize would all like extra time, that is not provided to the majority when you offer an amendment. Where expected to digest it, speak out on it and ultimately vote on it. We are going to continue to hear both sides equally by the rules of the Committee Going forward are some of these amendments i know you will not like. Just like we will be seeing your an immense later. Thats your amendments later. Your amendments later. We will do it equally as the Committee Rules require. O wish . Wish jack i would like to yield my time to mr. Doggett. It has become clear that this markup is not about tax reform, it is but a political life preserver. This whole procedure is totally out of order. We were presented with the final changesof 425 pages of to complex tax law on friday. Now we are given an additional 30 plus pages 33 pages to be precise of changes to that amendment. Or estimate ofe what these changes will cost. They are bundled together in a fashion that is not consistent with the operation of this requires on the International Rules some time to evaluate how those intersect with the provisions. One has to wonder if mr. Gary cohen as the lead person at the white house had a hand in the development of these provisions since we have been meeting additional disclosures have come out as a part of the Paradise Papers about the hundreds of millions of dollars that are being handled in offshore accounts throughout the islands of the atlantic and caribbean. That in some cases there will be no tax charge on them at all. With the slightest change in these International Rules which are included here, it is not possible without some review and some review by people frankly who may have more expertise and understanding of the tax rules and regulations than some of the members of the committee have an opportunity to review and do some independent evaluation of those. It is clear that the majority does not feel that they can pass the legislation by following the normal procedure and that this amendment is nothing more than a series of patches on a bill to try and secure some additional support. These International Base erosion roles may be nothing more than more erosion. What we need to do is be able to evaluate those we are not even accommodated with a few minutes to discuss and review and look at the intersection between these 33 pages in the form to 25 pages that we were so recently presented. On the carried interest issue, the chairmans position has been in the original bill. This is parts of the bill that we can analyze that having holding. Of a year having a Holding Period of a year is sufficient. That is problem with most of the funds i am familiar with extend for 10 years or more. So apparently this is nothing but a gloss to protect carried interest, to protect a loophole that special provision affords to some to pay much less in taxes. This is the very loophole that President Trump as a candidate thomas he would eliminate and instead of eliminating it, they first had to decide of a oneyear Holding Period and now they have expanded it with a little broader facade anyway that will not change carried interest. If we had a score and an analysis, even by the joint Tax Committee of this amendment, we could determine whether or not it represented any genuine change. There are a host of other provisions in this measure that are worthy of further consideration but it is perhaps for the omission in the commission. We heard a few minutes ago in response to questions for mr. Thompson that something might be done about Disaster Relief. I dont see that, mr. Thompson, anywhere in these 33 pages. I must say i care your concern about white was we were providing relief one week and taking it away. Dont worry, theres help coming down the road. Gentlemans time has expired. So, whether it is Disaster Relief or any number of other provisions that are in this bill , we consider this amendment does nothing about the adoption tax credit the provisions in the original forged 25 pages have the effect of taking away over the course of the little more than 2 billion from the teachers of america. Teachers who are in schools that have been hardpressed by reduced budget and who bring their own supplies to the classroom and are currently entitled to deduct up to 500. Response to that provision in our law is to say follow this and probably contribute much more than 500 to reach their classrooms to enrich their classrooms that that is no longer available. There is no commitment to supporting our teachers in in reaching in enriching their classrooms. I wife who was a first grade teacher, it seemed every new school year we had another pickup truck load of cereals take back to the classroom. As i talk to teachers in texas, i find very much the same experience peter what is wrong with giving those teachers a 500 deduction and many more are spending much more than that for the classroom . Heard our colleagues talking much more about that about what theyre going to do, give money back to the people, let them keep it and they can make a choice. I think these people in california who had their homes , they down, their choice can use it to rebuild her home or they can abandon their home. That is a choice. The student that has a significant amount of student debt will now be denied the right to deduct the interest on a student debt, that student doesnt have much of a choice. The question is whether or not we will encourage the students and recognize this is a time in america when the burden of student debt is even affecting seniors who either had their own debt that remains they provided help to their children or grandchildren. Their future much of that. You can go down one provision after another and you will see that relief is not a part and i would yield to the children from michigan. You go down this list, you can see lobbyists at work. Every single one of them. These,u look at each of it you want to read the code of special interests, mr. Doggett, thank you for yelling. All of us on the democratic side can look through these and see what lobbyists has been in to see you guys. He was told by the chairman of the gentleman can review the amendment when it is offered. It is clear that has been offered and considered by many people on k street and the many people who have gathered here today. Members of this committee have not been afforded courtesy of looking at the bundle of provisions that is in this amendment and we know that many of the issues that have been assed by our colleagues improvements that are needed to this bill that they have not been considered or included. All this, whatever has been added here has been added with borrowed money. To the extent that this involves additional costs [cheering and applause] and are being borrowed and added to the 2. 3 billion 2. 3 children dollars. There are some suggestions that there are some new savings from moving to a chained cpi. But a precedent or weakening Social Security. They want to do it here. Precedent forhe saying they dont even get the little bit of costofliving increase think it now. For all these reasons i would urge my colleagues to vote a firm no against this amendment and all that it represents. You were recognized to strike the last word on the amendment. I want to go back to what our colleagues on the side. I take exception to that. I look at this amendment, there are a number of things i know you have done that you have been listening to members here. 1104 isll you section part of this amendment. There was a part of a lot of work between myself to tax the irs commissioner and your staff which is really addressing improper payments. Nearly onehat in four payments are improper exceeding 16 billion annually. This seeks to adjust this issue in a variety of ways. Im to thank you for listening. There are a number of issues that you have also been working with. My colleagues have talked to about and i think its important to note that the other side that if there are issues you have concerns about, you should bring them to keep just bring them to the chairman. Bring them to the chairman. This is a document that shows the chairman is listening. , the Business Community as well. , theread through this are issues here that i know Business Committee was concerned about and our corrections being done. I want to thank the chairman for listening. I hope that you will continue to listen to members on the other side. It is a bill that grows the economy and strengthens system which is clearly overburdened. Will the gentleman yield . This is an area that you worked on. We retained income tax credit on the postcard. That is how we help people get from welfare to work. We retained a commitment. If i understand it correctly, from our long discussions, these provisions make sure the dollars go to those families because theres a great deal hardworking families send her money to washington, the irs said at the families one eligible for that. Your provisions say your tax dollars will not be wasted follow the work you have done through the year. It will go to the people and families we are try to help move from welfare to work. They are try to help themselves from welfare to work. These provisions direct this correctly. They do. This makes sure those dollars are going in the right hands. I appreciate you listening. A number of issues in this amendment also go to you listening to people and members here have come to you and talk to you. Mr. Thompson, you are recognized to strike the last word on the amendment. We came in this hearing and we heard from you, mr. Chairman about the great history and tradition of this wonderful committee. I think everybody here we tell you that we all worked really hard to get off this committee for that very committee. This committee deals with some of the most important and weightiest issues that face our constituents and the American People. We proceeded after all of the lofty talk to talk about a bill that none of us have even seen until last friday. Today we start a markup on it and as was pointed out by a number of Committee Members without any witnesses, without any hearings, we are going to mark this bill up and we are going to rush it through in a week. We are going to change the tax loss significantly tax law significant way. Changes that have been made, issues that havent been dealt with and we are going to rush it through to be done by noon on thursday. I am told this process is even that we workire right around the clock to do this. Mike spence has been that whenever you work around the clock to rush things through, you dont get the best public policy. The constituents that we represent are the ones that suffer. Anyone who is watching this hearing being broadcast i am assuming that they get the idea that this process, there is a crooked process. They get the idea that this process is rigged. Process. Crooked who is it rigged against . It is rigged against the very americans that we were elected to represent in congress. Of going over a bill that we didnt see until friday, now dropped in our lap is another group of amendments that are pretty thick to deal them. We havent seen we havent had time to analyze them. As to whaten know these are moments do. Ofry them i raise issues others in the future the rest of you represent. Were told the chairman was going to work with us. I looked through here and i didnt see any reference to these folks host . Is this going to be in the next package of amendments that is dropped in our lap . The ability to deduct our state and local taxes, something that mr. Larson pointed out adequately. It is really going to cause. Onor states the state and local Tax Deduction provision is going to exacerbate that and going to send in more money to washington to help the Student Loans . This is a real denigration of the process and of this Historic Committee that everyone has been so laudatory about. Dont lose sight of this is going to add to the 2. 3 trillion that the underlying bill is already going to charge to our children and grandchildren. We are going to grow the 2. 3, plus this. We have heard from folks on the other side of the aisle that said, the debt is in a new issue. You are right, it is not. Some of us have been working on it for a long time. There is one rule we should all think about. That is when you find yourself in a hole, quit digging. Had 2. 3n a hole and we trillion to it in the first six hours and now who knows how much more with this bunch of this is a bad way to make law. To say bad way to treat this very important committee. Yelled back the balance of my time. Mrs. Mr. Smith, you are recognized. Thank you, mr. Chairman. I want to thank you for what for adding what is in page five. It is important to the hardworking families and that is child deduction. This is something that i would think no one on this committee would want to vote against. This helps working families where it will provide taxfree, fair childcare and adult care. Adult care, dependent care services. I would urge the entire committee to support that. I would yield the remaining time. Thank you for you and others speaking about the importance of continuing to allow taxpayers 500,000 per year to get from their employer. This helps in combination with the new Family Credit which is a dramatically larger Child Tax Credit for firsttime both parents get a credit as well. That college kid or parent who has moved back in, this is a commitment. I want to thank you for your work and others in this area. Mr. Smith, which like to yield to mr. Wright . I understand that mr. Thompson is very concerned about his constituents who suffered so badly and the fire in california. Our hearts go out to them, but to alleviate mr. Thompsons concerns somewhat, the repeal of the casualty loss deduction which he is concerned about doesnt occur until until next year, the beginning of next year. They still are entitled to itemize this year the deductions the losses they incurred this year and these terrible fires. Would the gentleman yield . Thank you for your concern for the folks who lost their lost who lost her home. Theres never been a fire like this in our country. Perng to hundred feet second. Entire neighborhoods were burned to the ground. Do you think we are going to be up to go in, assess all the costs and getting cleaned up and figure out where people are understand time to do the taxes . It doesnt have to happen then. The loss was incurred in this tax year. He did touch and exists in this tech the deduction exists in this tax year. I yield back. Mr. Larson, you are recognized. Looks i moved to strike the last work. I take it from my brief rules love the amendment, it does include any modifications to the state and local taxes. This amendment would not include that . And number of assumptions have made on the other side, including that of mr. Roskam completed with us. This is only 6 increase it i submitted to the committee what the state of connecticut the minister a revenue stated and what is fact that 41 of the residents of the state of the connecticut who are filers itemized their accounts. Mr. Barr told, how does that stack up when the other side says who is right in this case. Under present law, as reported, about 30 of tax filing units nationwide itemize. That is nationwide. Other states, including connecticut could find themselves, has joint tax been able to do any analysis on the states where there are significant filers . Who itemize their deductions what the difference is between the states and states that dont . Committee does not analyze that doesnt does that hasnt been done. That is why this misrepresentation can take place. If anyone of your constituents were being overtaxed double filers, you of the would not be angry, i guess. I guess you would say, lets be rational. Lets have some more expert witnesses. There have been no expert witnesses. There been no opportunity from anyone for the state connecticut , any expert as a relates to the impact of this bill will do, nor this amendment on the citizens of the state of connecticut. With rely and they are still reading it as they said on what be. Expect this impact will the impact is devastating on those individuals. We should have had an opportunity to hear this out but no, we didnt. This has an impact on 100 of our economy. Yet, as your fellow colleagues have said, what you are witnessing here is a shift. I heard people talk only about how this is going to benefit their district. I am sure it is. You probably had input into the bill. It is probably going to help your district. Who pays for that . The citizens of my district. We are already a donor state. Like california, like massachusetts, like new jersey. We are donor states. We give more to the federal government and we ever get back. We are proud to do that. We are proud to be up to bring aid to houston and bring aid to florida. We are proud to do this because we are americans. Yet, today, to your fellow americans, you dont even give us the opportunity of the courtesy to stand up for the people who are going to be double taxed for this. They dont even get a chance to speak out. Roskam, i spoke about you while you were out of the room. My question was, surely, the commissioner of Revenue Services in the state of connecticut is not lying about the fact that 41 of its residents pay this. Of course he isnt. What is going on here today as it has been pointing out this been pointed out been pointed out. I regard the chairman of this committee and all of its members are decent people but even honorable people are called upon to do political things for expediency. It comes at the expense of someone. In this case it is the very constituents that i represent in my state. That is why we are so angry on the side about what is happening to these taxpayers and what you are saying to fellow republicans and independents and fellow americans with the actions that are about to take place in this committee. I yield back. The judgments time the gentlemans time has expired. , i want to thank you for this amendment. The statement was made by my colleagues on the other side of the aisle that this was a product of lobbyists. Im looking through the list and i have been a part of much discussion. I cannot remember a single lobbyists. The Chain Security interests mix it harder. To carriedm interests makes it harder. I worked for hours on the family tax credits. Also on the 5,000 Childcare Costs exclusion and then thrilled to see that reinstated. This is for families who can barely make intimate want to exclude 5,000 of income so they can go and use it to help pay for child care costs. I have the highest rate of working moms in the nation in south dakota. Do you want to know what my average Household Income is . 54,000. Do you think those moms and as a working for fun . In south dakota, we pay double the National Average in energy costs. Because it is cold. It is hot in the summer. There is a provision in here that is want to help them pay the bills that that is going to help them to the bills. Maybe they can take a weekend where they can do something fun. You listened to mom and dad who are trying to get by and said, i know that that my colleagues on the other side think the government makes better decisions with taxpayer money. I dont believe that. I believe these taxpayers who work hard and make better decisions with the money for the families. That is the difference between the ideology within the two sides did i believe they can put this money back into their pocket and spend it best to provide for the family. The Analysis Shows is it is good to help the economy create jobs and raise incomes. We passed this tax package, we are going to have paychecks larger. It is going to put more money in their paychecks they can use for the families. I want to thank you for putting this substitute amendment together. I dont see one that lobbyists wouldve spent time getting a win on any of these. These look like once that are adding integrity to the bill. I appreciate the effort on this. With that, i yield back. I ask this letter be put into the record from the county of lake, supervisor district one hundred provision ive talked about. Mr. Connor i would like to strike the less work last word. This goes back to the fact we are not doing this goes back to the fact we are not doing her homework. A lot of complexity and a lot of changes in the tax code which is pretty hard to decipher. Just give the doing audience just just to give the viewing just to give the viewing audience example. Paragraph page 28 starting online one. The deduction allowable with respect to such amounts bears to page 372, and insert subparagraph c to subparagraph c h or i. Strike line three through seven and insert the following, paragraph one, commodities gross income. It means with respect to any corporation, subparagraph a. Or extractedduced by such corporations. Incomearagraph b, most from the disposition of property which gives rise to income. H 398, strike line seven to 10 and insert the following. Year forextile the taxable year. Iual to the product of subset , the sum of 104 plus the annual federal shortterm rate. Determine other section 127. 4. Subparagraph i income of the deans expenses with respect to such amounts. I could go on. Clue what iave a have read here. This was not something that my moms and dads in wisconsin were loving the chairman to get included. This smacks of powerful special interests in washington showing up on your doorstep, asking for special carveouts. You talk about simple find the tax code, anything but simple vacation of the tax code. Get ready, mr. Reid. We are going to be adding more volumes of rules and regulations stacked in front of you because the complexity of this light was that this committee has not had the opportunity to that test to vet. Who is going to benefit in which budgetary applications are going to be. My sense and reviewing this, it is going to be adding to the debt rather than decreasing it. Yet, this is what we are presenting minutes ago on the day of our first markup. We should be demanding a lot better performance from this committee, as far as changing a tax code that is going to have an effect on every living person in this country, including businesses large and small. Consider this, without any chance to review it, without having any hearings. Were supposed to be making a judgment on this within a matter of days. Sent to the house for by next week. I pity our colleagues were not even on this colleagues who havent lived in this world of taxes and tax policy ramifications, because they are going to be asked to make. You have to make a reasonable judgment on whether or not this makes sense for their constituents. I submit that there is not one of us that can make that judgment. Even if we are going to be at ask some questions. I did notice mr. Chairman and many you can clarify, did you can clear did you include retaining the work opportunity tax credits which is given to businesses if they hire veterans . I did not see that under the original bill. I dont see that being restored in your amendment. Am i correct . Oftenthe member knows, we get these exact amendments from you. We dont understand the query we query mr. Berthold about what this amendment due. We have the same opportunity to do that or exxon quest that is not my question. That is not my question. Berthold, is that included in this amendment . It is not in the amendment. To be clear, that is a tax credit for businesses who hire veterans. Ms. Black, you are recognized. Site the last word. Strike the last word. I want to thank you for providing in this amendment for the songwriters. The songwriters have a difficult time because much of what they create is now being stolen over the internet. Their income for their product is not something you would make and put a store and people go there and by. Their products are really over the internet and that is another situation we will have to look at to be sure we continue to keep the talent that for so many years have given us great interest payment. Thats great entertainment. Great entertainment. When a songwriter sells the catalog for the future earnings, they are taxed the personal income rate and pay income taxes again. It is a double taxation again for them. Back in 2006, the songwriters Capital Gains equity act was put into place. It was supported by members on both sides of the aisle is a bipartisan support. The cosponsors and family there was and literally there was no opposition. Again woulds back be devastating for our songwriters. I appreciate following what has been the tradition for them and replacing once again, what was taken out of the code to put this back in to make sure our songwriters have an opportunity to be able to continue to create continued to be able to earn a living on the creations. Thank you for that. I will yield the balance of my time. Thank you. Mr. Barthold, in addition to the Tax Foundation setting that people up and down the income spectrum will get a tax refund. The Washington Post saying that people would get a tax refund and your computation of the same thing. Effect thatputed all these people are going to get a refund, did you take into account that the state and local income Tax Deduction would be repealed . Yes, mr. Rice. You did. Wait. Even after the state and local Tax Deductions being repealed, people in every income quintile are going to get a tax refund . Let me emphasize, we are reporting average affects noted in the discussion earlier on household circumstances. We account for every revision in the underlying legislation and the chairmans amendment. Did you exclude people from connecticut when you came up with that . Our sample is based on a national sample. How many people from connecticut are represented because the idea is to reflect. Will the gentleman yield . Even after state and local i need to rep. Sires this clearly i need to reemphasize this clearly. Country will the get a tax refund . That isd that is negative in each income category. I yield back. Gentlelady come all time has expired. You are recognized to strike the last word. Mr. Barthold, how does this amendment affect the earned income tax credit . Thank you. Amendment does not modify any provision of the underlying legislation. It introduces some procedures to try and reduce improper claims of the art income tax. Could you explain those procedures . I will try to be brief. The proposal limits the limits earned income tax credit to amounts substantiated by the taxpayer on statements that are either furnished to the taxpayer returns filed. Substantiated by the taxpayers own books and records. In other words, we are not moving money here. Were adding a condition upon which that person would have to come forth with so that that person, we could check to see if they are eligible . That would be more the case that they would have to be sure of themselves that they could verify to an examiner. Why is this being done . Fraud . R to stop is that why we are doing that . The effect of the proposal i cannot tell you the underlying rationale that members may have had. There have been concerns about fraud in the earned income tax credit. How do you explain this . Has put forth information about this fraud. Host of it is not fraud. Most of it is a mistake or a mistake in them is filing. Those people have to refile all over again. Important this is in many parts of the United States of america. You know how much money is involved, you know that is what keeps people working, gives them incentives to stay on the job. If we had done this in puerto rico, we would not have to listen to the president pontificate about what is wrong with puerto rico. Let me ask you this, if the fraud is not been substantiated by crs, why are we doing this . In comparison to what else is in this amendment, when do you get this amendment . When did your side get his amendment . I can explain this amendment. I am talking to mr. Brady. For what purpose you when did your site get this amendment . At this time, as it was offered. Answer. E fully just as when you propose in the moment, you sure to all parties at the same time. In other words, your membership to not discuss this with you before that . This amendment was delivered to all members. Dont answer the question directly. Were not talking about fraud here. Were not talking about fraud. You look at that article that came out of 3 30. Talking about those corporations that have sacked money offshore beginning with apple. Billion. They manipulated the system. In fact, there doesnt seem to be anything illegal about what they did on face value. Not yet. This seems to be nothing wrong with that. Where not concerned with billions. We are concerned about joe on main street who made a mistake in his application in terms of proving his particular condition that he was working. That is who we are concerned about. If we are not offthewall, nobody is. If we do not see if we do not get our priorities straight, we are zeroing in on fraud that doesnt exist just like we did with the boating. Now when i talk to about anything to do with those corporations thank you all time has expired. We always try to provide you extra time to conclude this is america, this aint moscow. You want to go to moscow . Go to moscow. Your time has expired. Refrain your remarks and continue on the amendment. Seek to be recognized, five minutes. Thank you, mr. Chairman. We have sat here now for six hours. My colleagues on the other side of the aisle are claiming that this is all done at the last minute, that everything is being dropped on us. We dont know anything about it. Give yourself a little more credit. Most of you have been on this committee longer than i have been alive, for pete sake. You know tax policy. You know tax policy. [shouting] i take that as a personal attack. [applause] [laughter] now that i have brought some levity back to the chamber. We do have a Good Relationship across the aisle. You know tax policy. You have been on this committee, you have worked hard to position your entire congressional career to be on this committee at this moment, to debate this important issue of tax reform. My colleagues on the other side and members on my side, for the last seven years since i have been on this committee we have focused on tax reform. Putad chairman dave camp out an entire rewrite of this bill. We had numerous hearings and rewrite of the tax code from the bottoms of approach. The debates we are having today has been held for years after years after years. When you give this amendment here today, i am very confident you know International Taxation. Base erosions. I have heard you debate these issues. Larson havend mr. Had the issue of state and local Tax Deduction the gentleman yields on that point . It is not what is being recommended in this build i will not yield. To cling to the American People that somehow you are not capable or were cramming this information through, it is not accurate, ladies and gentlemen. We have had this debate. Theears in the making since last time tax reform was done. 31s is the product of those years. Were taking steps today to reform this code so that folks that we represent, and i have heard lengthy debates where you argue whether or not middle tax folks are going to get a tax break, but the facts remain, i have run the numbers for my district, i have polled returns and done different calculations for different families of four, for single mothers, for seniors, i have done that homework, and i come back to one conclusion each and every time. Sust as mr. Barth tolds table recognize. There are tax cuts being proposed in this legislation which means those hardworking people that we all represent, it is indisputable, are going to be able to keep more of their money as a result of this tax reform bill. Us living31 years of under this broken american tax code, we are watching our economy be decimated from within. We are not competing on the international stage. Were losing americans businesses and industries because we cannot compete because our code is so old. When the code was written in 1986, no one knew about the internet. No one knew about digital economies. We have to update this code so that we can compete on the world stage. Im looking at the proposed amendments here at the chairman has put forward. We will continue to have the debate as we go through this in the next four days. We live debate with the senate bill, we will have a debate on the floor, we will have a debate to the finish line, and im confident we can approve the bill as we go through it. But at the end of the day, what we are doing here is not something that we dont know what is going on. We have been working on this for a long period of time, and i want to heal the 40 seconds i have to explain the earned income tax break. Unfortunately, the program is riddled this amendment doesnt hurt the program [shouting] the gentleman from your controls the time. He took 10 seconds of my time. In a 2006 report from the treasury general, one in four payments this doesnt hurt those thats not necessarily [shouting] can i have my time . No. [laughter] pascrell, i would ask i apologize. We know things get heated. That would have crossed the line on the core of in the rules of committee in the house, so lets take a step back. Wouldwas sometime taken, you like another 15 seconds to conclude . Thank you. Mr. Escrow is a fiv friend of mine and i kn he is speaking out of turn, but this is not going to hurt. On this does is go back and does a comparison of wages to those that are reported, something that was done a long time ago, and now even the irs commissioner has said this is a reasonable way of assuring in the end, this is a good piece of legislation that i think even you would agree with because people do not want to see it is tough enough that we give the United States government money, that we are taking a from taxpayers, they dont want to see and wasted. I yield back. The gentlemans time has expired. Here is my intention. Dr. Davis is next in line to speak. My intention is after dr. Davis bartow,r questions mr. We will reset for a vote on the house floor. Well immediately reconvene here finish the amendment, and vote tonight. So dr. Davis, you are recognized to strike the last word on the amendment. Yield. The gentleman yields. Mr. Chairman, in response to what mr. Reid said, we tried some of the words tonight, but i want to say something. The camp model, even though there is broad disagreement, we are at three years. There are a series of informal sessions, formal sessions, we went back and forth and much of it was based upon goodwill and much of the fording of that legislation came from your side when the bill was published. But i do think in fairness that mr. Camp give us every opportunity to participate in the dialogue as we went along on the bill. The two of us joined the committee of the same day. We are very good friends and i must tell you he broke it down so that every single item in his eventual proposal had been thoroughly parsed, and if you recall,s strategy was to move your side out of the room after he had moved those out ad eventually he was down to his own staff. I get that. But that is not the beginning of the process, that is the end of the process, and i yield back my time. Mr. Davis, you are recognized. I yield to mr. Doggett. Byi would like to begin correcting the record on one thing i said with reference to mr. Reid when he was out of the room. With reference to the stack of documents he has there, its my belief that the Internal Revenue code has expanded the number of pages by almost 40 since republicans first of control of congress. Democrats have been in charge for two years, when the democratic president during all that time, and when you stack those books up, about 40 of it, as atle less, is there result of republican loopholes, changes in our tax laws. What i see in this additional 33 pages is more of the same. I defy anyone to explain how these provisions that were written on International Based erosion were written anyone other than corporate lobbyists or mr. at the white house, who has so much experience with International Tax avoidance. These provisions are designed to create a swiss cheese type of International Base erosion. International tax lawyers and accountants will find ways to work around these roles and assure that on much profits the tax rate will be essentially zero. They will find ways around the socalled 10 on highend income, and they will pay nothing, and that is why the focus that i will alert you to now, the amendment i will be offering, while it makes a number of technical changes, has one and only one purpose, and that is to ensure that the profits that are earned abroad get taxed on the same basis as those here at home so that we are not encouraging investment elsewhere, but encouraging investment right here in the United States. On these International Tax rules, there will be no postcard filing. There will be a complex filing in order to avoid any Tax Liability in the United States on these earnings. That is unfair to Small Business, to domestic businesses, and certainly to the families that will have to pick up the tab. I yield back. Will the gentleman yield . Recognizeentleman not that lowering the Corporate Tax rate from 35 to 20 makes it less profitable and less likely that corporations reclaiming reclaiming my time. I support a reduction in the statutory Corporate Tax rate, as long as it is not done with bard money. But i maintain if you have the Corporate Tax rate of 10 here and 5 or 0 abroad, there would still be an incentive to locate new jobs abroad, and that is exactly what you have under your build. You have a purported disparity of 20 at home and 10 abroad, but in fact, thanks to the swiss cheese erosion provision, it will effectively be zero for many of these transactions. At least this new language has been written to help clever attorneys and accountants avoid paying tax on their foreign operations. Will the gentleman yield . This is a job killer bill. It is designed to export american jobs so that someone chooses between san antonio and sutgar, they will choose sutga becauser they will be able to match it up with no profits in the caymans and bermuda and end up paying no taxes at all on foreign sourced income. That is wrong and that is where think this amendment along with this bill should be rejected. I yield back. The gentleman yields back. The committee stands in recess, and will convene immediately following votes. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] [captions Copyright National cable satellite corp. 2017] announcer House Republicans released our tax reform plan last week, which we just saw the wayans and Means Committees marking up. Monday it will debate it and vote on changes to the measure. To learn more about the legislation, go to cspan. Org congress. That takes you to cspans congressional chronicle page, where you can read the proposal. Announcer the house ways and Means Committee continues to work on the House Republican tax reform bill today. Committee chair kevin brady offered an amendment to the legislation that makes significant changes to the bill, including to the earned income tax credit and the carried interest induction. Watch live coverage starting at 10 00 a. M. Eastern on cspan3 and on cspan. Org. You can listen to the cspan radio app. The committee will continue marking up the bill wednesday as well. Announcer now, former pennsylvania congressman jason ohlmeyer talks about Political Polarization. He joined us on washington journal. Former Pennsylvania Democratic congressman Jason Altmire joins us now. He recently published his book dead center, how Political Polarization divided america, and what we can do about it. Congressman, in the wake of this shooting in texas yesterday, is there a centrist solution to Mass Shootings and gun violence in this country . Guest it is ironic. I have been doing a lot of writings about polarization and what causes it. What crystallized the fact that i wanted to put this in a book is when the pulse shooting occurred in orlando. The introduction in my book is about the political reaction