The committee will come to order. I have an amendment at the desk. The amendment has been distributed in advance. Mr. Neal. Would you like me to address the amendment . Lets do that. I am pleased for this amendment, the amendment in the nature of a substitute, on behalf of the majority on the ways and means committee, similar to the amendment i offered on monday. This amendment will refine several provisions in the tax cuts and jobs act. It also takes action on three crucial priorities. Helping american families, providing tax relief to main street startups, and increasing american competitiveness. Lets start with helping families. First, among other important improvements, this amendment will preserve the adoption tax credit. Now, i know americans who adopt are not doing this for the tax benefit. Were doing it because we want to provide a safe and loving home for a child. I know from personal experience the adoption process can be expensive and time consuming and ultimately so rewarding. And i know the adoption tax credit is important to many members of our committee, republicans and democrats. Weve had very thoughtful discussions about it over the past few days. So with this amendment, were proposing to preserve this credit, priority led by mrs. Black, mr. Kelly and so many other. This will ensure that parents can continue to to receive additional tax relief as they open their hearts and homes to an adopted child. Id also like to note that this amendment includes a provision led by ms. Jenkins that will help families with dablesed children save for their future disabled children save for their future. It will allow them to rollover excess assets from a tax advantage 529 savings account into an able account, which are designed to help americans with disabilities lead successful and secure adult lives. This amendment also makes clear were preserving an existing tax benefit that allows military families to deduct the cost of moving expenses. Next, to help Small Businesses, this amendment offers several important provisions to make it easier for them to succeed and grow. This includes providing a new low tax rate for businesses earning less than 75,000 in income. These are main street startups who fuel innovation and job creation in communities across our country. And i have heard from just about every one of our republican members from mr. Johnson to my right, all the way down the dias to mr. Bishop in front of me, weve got to do more to help them thrive. So with this amendment were taking action, were going to provide our main street small job creators with a 9 marginal tax rate, and the bottom tax bracket, rather than the 15 that it is today and under the tax bill, a 12 rate. This additional rate relief will allow american entrepreneurs to keep more of their income in those crucial early years. The time period that really makes or breaks a Small Business. We want more Small Business Success Stories in america, this special 9 rate for startups will help make that possible. Finally, this amendment includes provisions to further refine our International Tax reform. To help accomplish our twin objectives of increasing american competitiveness while protecting the u. S. Tax base and growing american jobs. These provisions come in addition to lowering americas corporate rate to 20 , moving to a modern territorial tax system. And providing tough but fair rules to prevent american jobs from moving overseas. Is this area of the code complete . Of course not. We have much work to do, as we work to ensure our american businesses can compete and win anywhere in the world. In Foreign Companies who want to invest in america, to create jobs as well, are addressed in the tough but fair manner. In other areas of our sector, including insurance, we continue to examine the provision in the original bill, make refinements and changes going forward, and im confident we will strengthen all sectors, as well as the insurance. For past several days weve had numerous discussions on many of these same priorities. These are areas where members on both sides of the aisle said we need to take a second look. We did. Now im offering this amendment on behalf of our committee to put them in the bill. This is important with this amendment we include these important priorities and meet our reconciliation instruction. Ensuring we can get this bill and this longawaited tax relief to the house floor as soon as possible. And to the extent the members have additional ideas to help families and strengthen our economy, i look forward to working with you on those after our work on the tax cuts and jobs act in committee is finished. Does anyone wish to be heard on the amendment . Show mr. Chairman. I think that we can conclude, as weve attempted to address the financial infrastructure of the country, that this process at best has been inartful, and at worst indefensible. After four days, not one democratic amendment has passed. When you look at h. R. 1, it contributes to complexity after having been advertised as the avenue to simplicity. Its harmful to the homeowner, its harmful to the homebuilder. Its harmful of the municipal investor and those that are willing to take risks. It adds 2ds. 3 trillion to the National Debt 2. 3 trillion to the National Debt. Weve had this argument now for days about guaranteed that this will put us north of 3 growth. Guarantee. We could have used this time for the following purpose. To discuss simplicity. To discuss investment. And not just investment in finance, but investment in human capital. Which is the surest path to address the Labor Participation rate in america today. One of the challenges that we face is the following. Technology has changed the workplace. Skill set has changed the workplace. Two million men and women in america have an opiate drug addiction, who are home playing video games in the afternoon rather than in the workplace. Coupled with the fact the opportunity existed for us to talk about an investment in community colleges, an investment for internship programs, and for all of us in this room today and viewing, an investment in Vocational Education to address the job shortfall in america, which the department of labor this week said was north of six million available jobs. 18,000 prevision manufacturing jobs in new england go un answered every single day. One million tech jobs across the country go unanswered every single day. Instead we came to a conclusion and then went out to seek the documentation. The changes occurred every day in this proposal and shift largely based upon news accounts. Every time there was a story that said the republican majoritys numbers didnt add up, they ran back to make adjustments in the numbers. Not in the policy. So were being told that we can borrow 1. 5 trillion based upon the premise that maybe it will generate 3 growth over the next decade. What happens if that doesnt occur . You cannot find many mainstream economists in america that say were going north of 2. 1 or 2. 2 and arguably they say it will occur likely in the first year or so and then we are going to revert to the numbers that i spoke of earlier and not to miss the following, mr. Chairman. This is about longterm demographic trends in america as well. Weve got to address that issue of Immigration Reform and tie it to the whole mission to of job growth and investment notion of job growth and investment in the workplace. We had an opportunity to do. This im paying pained that we could highlight as we attempted to do the genius of the Tax Reform Act of 1986 and then rush this through. Even though it was done in daylight. Its still you are rushed through. We gave its still rushed through. We gave some thoughtful commentary and pretty good amendments on our side and we wanted to fully participate and despite what some have said on the other side, i can guarantee you this, after 25 years on this kerks i did not start from the prems that i we should try to kill this bill premise that we should try to kill this bill. I looked at a tax system in america that is ineefficient and underproductive and, yes, there is a legitimate argument about International Competition that the country needs to address. So all of the good ideas and notions and thoughts that we had ourn side on our side were dismissed. I have never participated in a markup in all these years in the house where i was told more that there was a genuine affection for me. I was highly regarded. They really loved my amendment. They thought it could be considered. But were not going vote for it. And the trouble with that is that that dismisses again what we could have done on so many of these amendments, some of which are really helpful. And as support begins to peel off, let me predict whats going to happen. We saw these changes over these four days. Arbitrary changes in fact. And now i can tell you as a student of the institution where were going. Members will be asked to walk the plank on the republican side. And theyre going to be told, oh, this will be changed in the rules committee. And then when it comes to the floor theyre going to to be told, oh, if we could just pass this it will be reconciled when we work with the senate. Ive seen a summary what have the senate has done. Theres going to be some substantial changes. After this bill passes the house. So for those members who have thought that they were going to be done with issue today, when we conclude this vote, its coming back. You cant do what were doing to harm the middle class in america, all for the purpose of concentrating greater wealth at the very top. And you cant disguy it and you cant have disguise it and you cant have a nal sis of it. And you cant do it with just talking points. I wish this could have been done differently. I think the an opportunity missed. And we intend to have but one more speaker on our sirksde i believe, because we feel theres not much that were going to do to shift what has occurred here during these four days. With that i yield back my 10 seconds. The gentleman yields back the balance of his time. Mr. Roskam, youre recognized to speak on the amendment. Thank you, chairman braidy. This is not an opportunity to be missed. This is an opportunity to be seized. What weve had discussed among us over these past fow days openly, withrow bust robust conversation back and forth, and now a product that reflects several things. Its a product that says, lets not defend the status quo. And the subtext of all the arguments previously for changes to were changes to keep things as opposed to taking advantage of a transformational moment. So heres what we need to seize. Ive heard from a lot of chambers of commerce in my district. Crystal lake, illinois, st. Charles, illinois, pal tine, illinois, naperville, illinois, lake ziric, illinois, wheaten, illinois, my hometown. And their sense of relief about the notion of coming in and recognizing that Small Business in particular, the business on main street that is desspreatly trying to get a foot hold, they are welcoming this today. The notion, mr. Chairman, that you listened and that the committee listened and said, lets try and create an environment where first dollars are protected from the take of washington, d. C. , is a welcome relief today. What were proposing is no loophole, its no exception. Its protection. And to echo up with of mr. Curbelos themes earlier on in the debate earlier today, it is to recognize that the United States is a unique place. And historically what were in the midst of is this great debate. And you see it on full display basically today. There are these two views of the economy that are competing for the affections of the American People. On the one hand you have a group that essentially says, if youre successful, that comes at the demise of someone else. Its a zerosum game view of the economy. If youre successful, it comes at someones elses expense. We reject that fundamentally. We reject that wholeheartedly. We dont want to be associated with that. But on the other hand what we say is, no, thats not the way the economy works. Its not a zerosum game. And when people are successful around us, it enures to our benefit and now for folks on main street, based on this type of amendment, where their first dollars are being prect, what does that do . That creates an environment where others can prosper around them. It is buoyant, it is dynamic, it is invitational. And heres proof that it is really in sync with who the American People have been historically. We are an interesting, charming, delightful people. And heres why. When someone is successful around us, we say, how nice for you. We dont say, i want your stuff. We say, how nice for you. Because we think, that could be me. That could be my kids. That could be my grandchildren. And what this great debate is about today at its core are these two views. And what were doing today, yeah, were going to continue to debate this. We will continue to discuss this. This will be met with senate consternation and all kind of things but when it comes to it, what were on the verge today is winning an argument. Winning an argument about the future of our economy and what our world view is. Because ill tell what you. If younger people are coming out into this economy and theyre basically told, youre stuck in your station in life, youre stuck, and fleece way for you to get out of your station in life unless you have some federal program or some federal handout, heaven help us. The lights get dark pretty quickly. If, however, kids come out today and they say, i can aspire to things, i can do things, i can invest and so forth and i can keep more of my dollars early from the protection of the taking of the federal government, that is a very bright future. So, mr. Chairman, i just want to thank you for your work on this effort. We know theres more work to be done, that a markup is one part of a process. But ill tell what you. It has been a long time coming. And i look forward to continuing this debate because the stakes are high and this is an opportunity to be seized today and im proud to be a part of it. I yield back. Show less the gentleman yields back the balance of his time. Does anyone else wish to be heard on the amendment . Mr. Lewis, youre recognized. I ask unanimous consent to submit the Brown University report on the cost of war for the record. Without objection. The gentleman is recognized to speak on the amendment. Mr. Chairman, he dont attend social events at the white house. Ive not been interested in socializing with the president who spends so much of his time attacking my constituents. But i have read that theres some nice events there and that when it gets around time to serving dessert, the president likes ice cream. But he always insists on him getting two scoops of ice cream and the other people at the table getting one. And theres a lot of similarity between that dessert practice and whats being served up here today. If you look at where the money is on the individual side, most expensive parts are the alternative minimum tax and the estate tax. There are Donald Trumps two personal dips. And they are big dips. We dont have any of his tax returns, we know from the one return that was partially disclosed that whether he put millions of dollars in his pocket by eliminating the alternative minimum tax. And the same for his billionaire buddies. And we know that by given the small portion of america that has any role in the inheritance tax, that by eliminating that, he will pay nothing on these millions of dollars that he has accumulated , as his father passed on to him and as he grew them here in america. Nothing on the gain on those. And really, if you look at, it he gets a third scoop of ice cream here. Because the passthrough provisions are the same passthrough provisions hes used in the past, in his real estate deals, with carried interest as well. He gets the big bowl of ice cream and the American People, they end up getting to lick the bowl and pay for the ice cream. Because thats whats involved here. 2. 3 trillion of Additional Debt that will come right down on the American People with so little benefit for them. Now, its also true, as i mentioned, in my opening motion to postpone, that Donald Trumps conclusion about the Health Care Bill here was that it was mean and go with the senate. And this very morning apparentliering according to news reports, apparently, according to news reports, hes called to say essentially the same thing about this bill. Im sure hell celebrate its passage but hes told the senators, look to your approach because its better than what the house has and we havent seen it so were not able to compare the two. The issues here are not whether we will take away from someone, but whether we will create more opportunity for all americans to share in the american dream. We believe that the better way to grow our economy is to invest in americans, to invest in american jobs, to give more educational opportunities, to honor the contribution our dreamers and many of our immigrants can make here in america. Those are sure tested ways to grow america. What we are presented with this 202 6280205 202 6280205 202 6280184 202 6280184 trickledown approach of giving most of the benefits to donald trump and his buddies is the approach that has failed to work to grow america time after time again. All that it does is grow speeches at republican conventions. But it does not help the american economy. As for the american economy, there is the other major issue of seeing even more of our american jobs outsourced abroad. And thats what exactly what will happen in this bill as they create a giant new loophole to incentivize the export of jobs abroad. As for the process here, you know, we tend to look at it from this side of the table. To consider the fact that our request for hearings over the last year have been rejected. Weve had almost no consideration of this. The fact that President Trump didnt have the courage and his administration didnt have the courage to send one person to testify at that table and answer questions about this. The fact that this bill was dropped on us at the last minute, a managers amendment at the end of monday, and then a managers amendment that the chairman will not even explain the provisions, wont tell us how much they cost, what they do, and we dont have anyone here to explain it. Its really not from looking at this side of the table that counts. Its from looking at the other side of the table. The side of the table that so many people across america are looking at this and trying to figure out, what god does do for me andify what good does it do for me and my family . The answer for most of them is nothing other than give you the opportunity to pay for more debt. This whole process is about a bad a bill that is so bad that they fear the involvement not only us as members of a committee on a fair and democratic basis, but they fear the examination of this bill by the American People. And thats why they pass it today in this con drived way and they will bring it up on the floor of the house next week. And it is only by the American People contrived way and will bring it geup on the floor of the house the week your it is only by American People getting involved, contacting their members and demanding fairness in this bill that we have the opportunities i think can be achieved. But ultimately rejected. Time has expired. There is a reason why we have not done this in 40 years. This committee has worked on it for many years and had many hearings. I know the American People are frustrated because, every year we say we are going to fix the tax code and do not. To fixing these tax code as we can possibly get. This is going to simplify the tax code for nearly every american, probably to thirds if not more will be able to fill out their taxes on a single piece of paper. That will be simplification. All americans will get a tax cut. But, most importantly, it is about jobs and job creation. That is at the heart of this bill, what it does is get the government out of picking winners and losers. Country,ong, in this Small Business people, farmers and others, have had to deal with applicator schemes called depreciation. This bill gets rid of that. No longer does someone have to decide whether it is better to buy a new forklift versus to invest in some manufacturing equipment. One depreciates over five years and one depreciates over seven years. That is wiped away. That is what this is about. This is about letting Small Businesses, the job creators in this country, decide what they want to spend their money on. It is significant just for that. Technically speaking, other people will call it expensing. In this committee, we get into the weeds and most americans do not know what these complicated words mean in the tax code. I can tell you this will matter when it gets out to the main street of america, where people well no longer have to call their accountant to see what they can buy and what they say, myy. Let me just friends on the ideal who have had four days to offer amendments on every credit under the sun, that they want to keep in the tax code. This is something for some reason all of those got through congress over the years. What we did is we were putting in tax credit for special exemptions for things that washington and politicians were deciding what was best. We are getting out of that business. There is nothing wrong with a lot of the credit that we are getting rid of. The fact of the matter is we have to ask ourselves, should the government have been involved in these decisions in the first place you out mr. Chairman, i think we have worked a lot of hours and have been through a lot of meetings and hearings starting with many chairman before you. It has not been easy. I think, through it all, this is a product that, as mr. Roskam said, we should be celebrating. Take the next step and get this bill to the house floor next week and pass it overwhelmingly. I would hope that we would get some democrats that might join us in passing this bill. I will not count on it, but i would hope we get some. Then we would hope our colleagues in the senate can pass something so we can get to conference. Take a complicated tax code like the one that has been created over four decades and try to it, it is going to be obligated and you are going to have lastminute amendments. So many people are impacted and we have to be slow, methodical, careful. That is exactly what this committee has done under your leadership, mr. Chairman. Congratulations. I want to thank you and the members and staff. I yield back the balance of my time. Missed 11, you recognize to speak on the amendment. Compensatednothing about what you have been doing. Do not believe the rhetoric or propaganda. Zero bipartisanship in this bill. Abouthen you have talked it has been a veneer, it does pick winners and losers. The big winners are the very wealthy and some corporations. Classsers are the middle and the rest of america. Thatt keep saying everybody is going to get a tax cut. That is not true. There may be some slight , but many, many tens of thousands of taxpayers will not get a tax cut. The main tax cut is going to go to be very wealthy. The speaker said at the beginning, the focus is on middleclass tax relief. The focus is on directing not tax relief to the people in the middle. The people are trying to get there. That is why we put our emphasis on that tax relief, for those people war in the middle. Not true about this bill. It is really the opposite. There is some change in the terms that have passed through. Mr. Bobt we can tell, hope was not asked to explain. The past due money is going to go to wealthier people. The deficit, you brought it down a bit to meet that requirement. Trillion. Still 1. 5 who is going to end up paying deficit . 1. 5 trillion it will be the typical family of the United States of america. The typical family. I want to finish. There has been talk about deliberation. I really think this makes a mockery out of the legislative process. You have gone through the motions, you have involved us not at all. The reason is, you are desperate. You have failed to pass anything of substance, anything. Now, in terms of the political situation, as well as the policy situation, you have left us with bill. Tion, pass the tax you are going to pass it regardless of what is the impact on the typical family. I want to say this to you as you go through this process, this is not going to wear well. In fact, the president has already said, do not get too hung up on the house bill. Do not get too hung up. That is because, i think, there is a realization that left hanging out are the vast majority of people in this country. This, today, is not an act of liberation act of deliberation, it is an act of desperation. Dimon yield back. Mr. Black. You. Ank i, like others want to thank you and the staff for the work you have done. This is hard work. Takes time, that hours and expertise. Obviously no tax reform is ever going to be perfect. There is more to be done. There are still pieces i would like to see in this tax reform. We will have the opportunity. But, let me say thank you for the restoring of the adoption tax credit. I have worked on all of my career, over the 45 years, i have been working to make sure that i that every child has a forever family. I will tell you briefly about Inspiring Stories that happened just this year, of a family who adopted. This family is a family from a owens. A womens they are from pennsylvania. Following the untimely passing of one of their previous toldren, they felt a calling adopt a child with special needs. Fast forward a few years. Not only did they adopt a child with special needs, they adopted for children with special needs. I still have a picture of that family that visited me, because these are children who would not have had a forever family. Adoption really is a beautiful choice for parents to make and we should make sure our laws work for these families and not against them. We have families across this country that have room in their heart and even room in their homes to adopt, but may not have room in their budgets. Today we have over 415,000 youth in forster care, including about 108,000 that are eligible and waiting to be adopted. Yes, adoption is expensive. That is something for another day. We have to look at that state and federal regulation that caused the cost of adoption to rise. Options can cost up to 40,000. Families, in many of these cases, do not have those cons of expendable dollars. Thank you, mr. Chairman, for preserving this adoption tax credit. We want to make certain the tax code works for families who are willing to open up their homes to adoption. I yield back the balance of my time. 202 7488000 thank you for being a champion for adoption and other issues. Mr. Thompson, you are recognized. This is not a bipartisan measure. There were no hearings. We did not hear from any witnesses. We did not hear from any expert. The matter isof that there are some things we know for sure. Bill wereat, if this to become law, our National Debt would grow by 2. 3 trillion. That is a cost that would be passed on to our kids and our grandkids. We know that homeowners in many states across this great nation would lose. They would lose value on their homes, it would lose savings and a retirement. For many people, the value they accrue in their homes is, in fact, their retirement savings. We will take that away from them. We know that the state and local tax reduction will be reduced. We know what this does. Not only does it hurt homeowners and taxpayers in highcost states, but it also hurts the local government and the state government. It hurts the people in those states that rely on and depend on the programs that those tax dollars go to fund. , hurts it hurt jobs infrastructure expansion and improvement. It hurts everything that is important to a community. Folks tot hurts experience the tragedy of the disaster. I spoke on not early on in the week. People whoakes away have experienced the disasters ability to use the tax code to provide help for their families. Cruelool twist, in a it ignores other disaster victims. Please be warned, every one of us has a district subject to a disaster at some time and at some point. If it cons, you are going to have to figure out how to get help for your constituents, how to do a separate ill to do it. In fact, if it were left alone, that would already be taken care of. The people who are experiencing just a light, shattering change because of a Natural Disaster would be able to get the help they want. This bill creates winners and losers. We know veterans lose. We know folks with high medical costs lose. As i said earlier, we know our children and grandchildren lose. They are going to be footing the bill for this disastrous piece of legislation. We know those looking to build Affordable Housing and those looking for Affordable Housing to be able to accommodate their local jurisdictions, they are going to lose. A know students who carry loan, they are going to lose. Wins . We know corporations when. We know wealthy folks win. Someone said it is not a zerosum game. I agree with about half of that statement. Probably better to say it is a crapshoot. The proponents of this believe that, if we pass it, this trickledown theory that has never worked before, is going to materialize here and there will be incredible growth. That is not anything short of an absolute crapshoot. The truth of the matter is, it is a zerosum game. Corporations get a big win, get a bigkes folks win and it comes at the expense of a middleclass, the future generations. Is as bad for the American People as is the process that we went through to get here. 202 7488000 i yield back the balance of my time. Mr. Buchanan, you are recognized to speak. Thank you. Think this is a great bill not perfect, but a great bill. It is obvious, after listening that we have a different philosophy. A lot of us come from different backgrounds. I have been a job creator for 34 years. Jobse created thousands of. My parents worked in the factory. I was one of six kids. That is the perspective i want to talk about. As i look at the facts, we have good sides. I looked at the last 10 years. We havent ran up 10 trillion in debt. Plenty of blame to go around. You can put part of it on bush. You have to take some responsibility, at some point. We talked about stimulus. 800 billion stimulus. We had a 10 trillion stimulus in the last 10 years. We have grown at 1. 5 , net it never getting to 2 . For the first time, we have not had better growth of the am not. There has been no pay increases for our employees, as a result of that. I read something on the first page of usa today and tied to double check it. It is sad. 62 percent of americans do not have 1000 in the bank. I thought to myself, as a bluecollar kid, it is unimaginable that we are going backwards. We need a change. The status quo is not acceptable. The bottom line is, we need to find a way to grow our economy. Is 2. 8 trillion of Economic Activity. We have had two quarters of 3 . That does not mean a lot, ideally we need to move to the percent or 3. 5 . It makes a big difference in terms of working families and their paycheck. One of the things i am excited about, and we have a philosophical difference on this, you do not have any jobs. You do not have any pay increases. In my opinion, unless you can have some Small Businesses be successful. They create most of the jobs. Not all of them. I was a chairman of the florida chairman. 95 of those businesses, frankly, they made less than 100,000 a year. 50 employees or yes or less. This bill addresses a 9 tax on them on the first hundred thousand dollars is a huge benefit to them. We can talk about passthroughs and it does help companies that are larger. It, thest two admit nfib, about do not participate at that level. What they do at the 9 level. For the first 90,000, 9 is a huge factor. And they create most of the jobs. I tell my friends, my parents were union workers. We do not have unions. If you do not have successful businesses. America is in the business of business. Especially Small Business. That is what where i put my focus. The other is startups. We had more businesses close in the last decade the and open. Never in the history of our country has that happened. We need to do more about entrepreneurship. We need to do more about helping startups. I did a conference in my district, all women. Ceos of small to mediumsized businesses. They were asked why are you doing not . I said i believe 50 and percent 57 of stars will be women lead. Hat is where we need to focus congress, what can we do for entrepreneurs . What can we do for Small Businesses . At the end of the day, if they are more successful, we are going to have more jobs here that makes a difference. Also, i would like to say in closing, i want america to be the best place in the country to do business. We have a lot of Companies Moving out. The goal is to get companies to move back in, move the money offshore that into our country. I would like to declare america is back in business. Thank you. I yelled back. I yield back. Sit andnot help but drink why missed opportunity this process has been. There were many of us on this side of the aisle that were eagle eager to work with you and our colleagues. And take a serious run at the tax code. This has become complicated, riddled full of special interest tax code. Many of us were interested in working with you to simplify the code, broaden the pace the base, make it fair for Small Businesses, family farmers to promote growth, keep us competitive in the global economy. But, also, to do it in a responsible manner. Unfortunately, it is a missed opportunity. ,any of the conversations that mr. Chairman, you had, asking for our input. It started with the principle of lets do this with revenue neutrality. Thats not blow a hole in the budget. You are in agreement with that. But, this bill falls short of that. To debatemore time and consider amendments, i was hoping to offer one meant to protect many of you on that side. It would have expanded the endangered species list to include fiscally conservative republicans. You are on the verge of going extinct. You still have, even with the managers mark, a 2. 3 trillion shortfall that would be added to future generations burden. Unlike tax cuts in the past, we have run out of time. We do not have the luxury of time and the recovery if we make a huge fiscal mistake. We have 70 million baby boomers beginning their massive retirement. 10,000 a day, conjoining Social Security and medicare. If this bill goes forth, the Economic Growth projections you on do not materialize, Social Security and medicare are on the chopping block. That is a missed opportunity, mr. Chairman. It did not have to be this way. We should also approach this under the premise of first do no harm. Lets not screw around with things that are working. Toffered an amendment preserve, protect and expand section 199. The incentive for domestic and you factoring in farmers. So we can keep jobs here. That was summarily rejected, out of hand. I am hearing from a lot of my businesses and farmers how detrimental the loss of 199 would be to them. Many of them operating on the margin, trying to stay above water. Many farmers are concerned with the elimination under the chairs mark of lifetime exchanges and carry backs. We did not have any hearings, no intended orbout the on intended consequences of many of the policy changes that are being made in your mark. A quicksee, with review, and we have only had a little over an hour to review the chairmans latest amendment. You still want to politicize our places of worship. Idea thatrible policy can result in. Right now, it if they want to participate in political campaigns, they can. A just lose their taxexempt that is. Youre saying it is all right for them to do it and maintain their taxexempt status. This creates a backdoor loophole for political contributors to funnel money through places of worship so they can directly get involved in the outcome of campaigns. Ourpotential for strife in communities, where our places of worship is one of the last remaining institutions or refuges for us to come together as americans, and fellowship and spend time together, regardless of political efficient affiliation, is in jeopardy. Some restrictive language. But these organizational expenses related to political speech do not have a clear definition of what the minimus means. Certainly i certainly hope , if we are going to move forward, we look at that in particular. Talkinge are moving about the future of our children and grandchildren. One thing this bill is guaranteeing them, with your ,rojected growth expectations is this will add 2. 3 trillion to our National Credit card. I, for one, am getting tired of republicans leaving a fiscal mess for the next administration to clean up. Your time has expired. Thank you, mr. Chairman. I wantose this debate, to say thank you to you and your staff for all of the hard work. Chairman, i have been sitting here all week with this stack of papers. I am glad to be able to do my part to say, this will be a thing of history when we are done. In the house of representatives, as the senate, and get this signed to the president s desk and replaced with a simpler, fairer tax code that is going to sick the6 to the typical family in western new york. Mr. Chairman, as the youngest of 12, whose father passed away when i was two years old, who ,as raised by a single mother 1606 is a heck of a lot money a lot of money. That is money these people have earned. By doing the work we have done here, and i hope to work with my colleagues across the aisle as we go through this process to the finish line and do better for those individuals back home. We are giving direct relief to them. I thank you for the opportunity. Mr. Chairman, i want to know one thing. I have been passionate about the issue of College Costs and college debt. Chairmans mark, the section that dealt with the tax on endowments for private colleges and universities. To my colleagues on the other side, i was listening to your debate. Paradisereference the island papers, i went through it with a comb. I will note to you, the New York Times article of november 8 uncovered and dominance are potentially listed in those papers where they are shifting income, the tax havens and they are not taxable. In order to shield investment shot at to where they are investing their money. I am going to take this issue on and i appreciate you allowing us the opportunity to get into College Costs and debt. It has gone up 500 and the year 2000. When i see Investment Managers 839ng paid 28 million from 2010 to 2015, it looks like columbia. When i see that level of compensation, where endowment this should be should is going , imwo Investment Managers going to ask the question. Is that right . Is that there . Provision is a step in the right direction, to get College Costs under control. That is down. Thank you very thank you for allowing me to deliver relief to middleclass america. With that, i yield back. I, too, was raised by a single mother. Like your mom, she would say, you are going to have to pick up those books, young man. He aware of that. Mr. Coley, you are recognized. Thank you. Thank you mr. Chairman. I will be brief. If i could enter into the record, mr. Chairman, a letter from june 23 of this year, 2017. By seven of my republican colleagues from new york state. They are in opposition of the salt provisions. Them to voteat led against the budget resolutions before the house last week, because the salt limitation was in the Republican House tax bill. My understanding is the subdivision is full bar in the senate proposal. Could, it is signed by my colleagues dan donovan of staten island. A least the phonic of state new york. Peter king of long island. Seven individuals. They either got it right and the provisions are in egregious or they are wrong and my other colleagues are correct. No objection. Thank you. Either they got it wrong, mr. Chairman, all seven of those republicans. Or they arent brave enough to stand up the benefits to the benefits of this bill my colleagues have put forward. Either they got it wrong in mr. Reid and others have gone it right. But this letter, they knew that theelimination of salt, deductibility of state and local taxes would be crippling to their constituents. They have expressed that opposition in june. They expressed it last week. On three of these individuals have gone public and said they will not support this republican tax scam on the floor next week. Fullpect that, when the provision is included in the senate bill, we will see more republican colleagues peeling off support of this bill. Special the interest of operations, the most wealthiest, at the expense of working people. And state butrict also in other countries. I would like to yield my time to mr. Davis. I think the gentleman for yielding. As we wind down to the close of this discussion, i am reminded that government should help people, not harm them. Governments should strengthen the economic wellbeing of the middle class, whose wages have stagnated. Not the most secure, and not washingtons special interest. The Tax Policy Center estimates the current plan will save the 450m 80 between 50 and in taxes per year. 1 andbestows the top average of 129,000 per year. It gives almost half of the individual tax cuts, to households earning more than 500,000. Over one third is to households earning more than 1 million. Corporate special interests, reap almost 70 of the total tax cut. The Median Income in my district not 500,000. 00, for chicago, we will lose. Illinois will lose. The country will lose. I yield back the balance of my time. The gentleman yield back. Mr. Keller you are recognized. Thank you. Icon at two, want to thank you for your hard work. This has been an interesting four days. I think we started off with one idea and it did not make sense. It was to make America Great again and also improve our economy. I think we have created an opportunity. My faith is in the American People. When you give them an opportunity, we will run with it. We will have more takehome pay and be more competitive in the world. We will be able to compete with people and we are not in the backseat. So much that happened in the last couple of days are good for america. We will make america a bloom again. I know the other folks on the Community Say it is important more americans adopt children. No one knows more than you about that. Would say we enjoyed the back and forth with our folks on the other side. Has been interesting. At the end of this exercise, the American People took a look at it and said, you guys did really well. I thank you, mr. Chairman. Staff thatk the worked hard on both sides to make sure we were able to voice our opinions. Thank you mr. Chairman. I yield back. I appreciate my friend, mr. Kelly, talking about opportunity. Actually, i appreciate mr. Reid gearing up i thought he had those books stacked up so people could not see him, based on what was going on. Will the gentleman yield . Now, we are moving into the next phase. Me what ther to president is going to regard this. I remember he celebrated your efforts to dismantle the affordable air Affordable Care act before he denounced it as being a mean bill. I do not know when the story started coming out about what is really in this bill and the feedback. I do not know if he is going to stand behind your not. But i know, in terms of what we have, it is a very good bill for donald trump. Enterprisestrump are passed through entities. Not Small Business. Passed through entities. He will be able to take advantage of that lower tax rate to have hundreds of millions or billions, however million that however many you has, that he can pass on to his children with no inheritance tax. We know from the one tax form that has been released, that it was the alternative minimum tax that forced him to pay anything meaningful on hundreds of millions of dollars of income. You have eliminated the alternative minimum tax. I think mr. Trump will be happy about that. We all know that donald trump has bragged to be the king of gab. He borrowed it left, and sideways, stiffed people, was able to get out with multiple groep sees. He has played the debt card. With this bill, we are playing the debt card. We are increasing the National Debt. Probablyrillion, but 2. 3 trillion after we pay interest. As i pointed out during deliberations, when i try to have a Circuit Breaker to protect us if this goes south, that a 1 increase in the historic low Interest Rates will add another 1. 5 trillion. The king of debt will like that. This, ultimately, is a lost opportunity. I could not agree more with our friend. There are many things that we agree upon that we could have worked on together. If you think something needs to happen with the production tax credit, you did not have to fill it out. We could have worked on it, not make a commitment to that industry. We could have helped Small Business. They are not going to get anything. The vast majorities of Small Businesses are not going to get anything out of the passthrough, as they do not hit the 25 . They pay less in that. We could have done a better job. Could have embraced some concepts the republican colleagues are talking about in the senate, to extend the earned income tax credit. We could have made it refundable, helped 35 of the people who are completely left out with your bill. We could have done that together. Instead, to go a slightly different direction, on your own, no hearings, no opportunities to go back and forth with this. Four days of debate. I like to debate. I do not mind. But, we could have been involved with the legislating. Serious, bipartisan legislating, knowing what is actually in the legislation and working together to refine it for Small Business. Working to refine it for our failing infrastructure. These are things within our capacity. This is a lost opportunity. Some of you had a chance to meet my younger grandson when we kicked this off, little quinn. Because, what this lost opportunity means, is that, for quinn and your kids and children and grandchildren and the people who follow, their problems are going to be greater. We miss an opportunity to work with them. And we have failed in our fundamental opportunity and obligations to Work Together to solve americans robbins. Americans problems. I think it is unfortunate and i am done. Thank you. 000 mr. Holding will control the final comments. Mr. Holding, you are recognized. My constituents appreciate the effort taken. The status quo is unacceptable and this bill is our best chance to get the economy booming. Median income household of four in north carolina, at 300 tax cut. One of the important aspects that i worked on a lot, is moving to a territorial system. And finally allowing American Companies to be on a level Playing Field. We are removing the punitive barriers with a worldwide system. Able, in thisot bill or in the subsequent amendment to move to a territorial system for citizens. Currently we are one of the few countries that has a citizenship based taxation for citizens. Able to moveld be towards a residency based taxation system, to ensure american citizens have a level Playing Field around the globe as well as others. Citizens, around 40 more expensive than their foreign counterparts. As American Companies begin to see the benefits of a territorial system, i look forward to continuing to work on a solution about our citizens overseas, with similar benefits, ensuring that talents, not tax factor inthe driving multinational companies. I want to thank you. I am proud of this bill, my work on it, my colleagues. I modded to sit here with them and look forward to seeing the benefits of this bill going forward. With that, i yield the remainder of my time. Thank you. In 31 years since this committee has done this kind of historical work, i would like to congratulate the chairman. First of all, for his hard work and guidance. It has been a privilege for me to be on this committee and have part of this process. I want to thank him for allowing my constituents every day than i am on this committee and bring their priorities to this committee. Ive asked myself three questions throughout this process about this bill. Does it make the tax code to blur . The answer is yes. Does the reward hardworking families in my district with a tax cut . The answer is yes. Does it give Small Businesses in my district and opportunity to grow and hire more people . The answer is yes. Thank you very much. I yield back. Thank you. Mrs. Sanchez. Thank you. I would ask unanimous consent to enter a letter from michael cohen, the director of the California Department of finance , outlining 10 different provisions and especially the salt, the salt reduction. That would be extremely harmful to california families. Higgins. You, mr. I understand you are the final speaker. Accepted . Irman, was yes. The very beginning, this was nothing more than an attempt to cut taxes for Corporate America. And for the highest earners among us. If you make over 750,000 a year, your raise next year will be 8 just because of this tax cut. Everything else has been a money chase to find a way to pay for this massive tax cut for Corporate America and highend earners. Unfortunately, Middle America got hit hard. My friend, mr. Reid, talked about the 1100 savings that western new york families will realize. It got obliterated because there is no longer a deduction for state and local taxes. Said thatry secretary these tax cuts would pay for themselves, that there revenue neutral and there would be an additional 2 trillion of Economic Activity beyond that. That is a boldfaced lie. Nobody believes that. Not the Tax Policy Center, not the wardens, not goldman economists, from which the treasury secretary came. The White House Council of economic advisers had the thesety to suggest that Corporate Tax cuts would result in a 4000 to 9,000 annual rease in medical america in Middle America. Not one of my colleagues on the other side can make reference to that as a benefit. Another boldfaced lie by this white house perpetrating against the American People if the demo will suspend. You are over the guardrails of the quorum. Corporate america. Exxon mobil made 8 billion in the last five years. You are not even giving them a tax cut because they did not pay any. Electric made 29 billion over the last five years. You are not giving them a tax cut because they do not pay taxes in the last five years. In fact, they get a tax rebate. 74 billionle made over the last five years and paid no taxes. What is even more egregious than that, apple took the technology it was paid for by the american taxpayer, cut screen technology, the internet, Global Positioning satellite, voice activated personal assistant. They took all of that technology, it innovation that was paid for by the American People that is in everybodys smartphone in this room, and they went and made all of their smartphones in china. Was not alwayst like this. It was not always like this in america. Industry, captains of 40 years ago, believed it was their responsibility to help a balance that economic interests of all the stakeholders in the economy. The owners, managers, workers and communities in which they operate. Wilson, from ge, ray jones from ge, Irving Shapiro from the pot. They have abandoned that to push ,ll of the profits they make their shareholders, screwing the American People. There was a time when you had Economic Growth and the wages of American Workers were consistent. 97 for growth. 95 for regis. Growthwith 93 economic over the past 30 years, wages have grown by 9 . By 9 . You are giving a tax cut to Corporate America. This is fundamentally unfair. This will not produce good growth in the american economy. This will saddle future generations with more debt. Everybody talks about the deficit hawks. Where are all of the deficit hawks . Where are any of the deficit hawks . Every critical view of this plan says it will not produce good growth. They say it benefits wealthy people and wealthy corporations at the expense of Middle America. Mr. Neils recognize for you see request. This wraps it up. I have a statement from the record from Veterans Affairs Ranking Member tim walz. On the effects of charitable contributions. Analysis of hr one. It is urging the committee to maintain the orphan drug tax credit. It is signed by dozens of organizations asking us to hold onto the orphan drug tax credit. Without objection. Chairman, i want to offer the Washington Post article, the four pinocchios that indicate Senate Democrats falsely claim gop plan will raise taxes for most workingclass families. Democrat in favor should delete to tweet and make clear that was an error. Thank you. We are sending a very clear message to those of you who defend the status quo, those who love this complexity, who crave their special tax breaks, who relish the fact that washington has the first claim over your dollars, to the families. As a person, your days are over. Americans deserve a new tax code for a new era of text of prosperity. Today we deliver. The question is on the green. All those in favor, signified by ip or those who oppose, no. The eyes have it. A roll call is requested. Mr. Johnson. Mr. Nunez. Mr. Nunez, i. Mr. T berry. Mr. Rikers, i. Mr. Buchanan, i. Mr. Smith, i. Ms. Jenkins, i. Merchant,lson, mr. Miss class i. Mr. Reed, i. Mr. Kelly, i. Mr. Nason, i. Mr. Meehan, i. Mr. Holding, i. Mr. Smith, yes. Mr. Rice, yes. Aye. Tryker, ms. Malala skate, yes. Mr. Bishop, yes. Mr. Neil, no. Mr. 11, no. Mr. Lewis, no. Mr. Doggett, no. Mr. Thompson, no. Mr. Larson, no. Mr. Blumenauer, no. Mr. Kind, no. Mr. Pastorale, no. Mr. Coley, no. Mr. Davis, no. Mr. Sanchez, no. Mr. Higgins, no. Mr. Wall, no. Ms. Of any, no. Missed you, no. Brady,aye. The clerk will report the vote. And 16 nos it is agreed to. On adoption, all those in favor. Ignify with i 202 748800 the question is on favorably reporting the bill hr one as an amendment. All those in favor, signify by saying i. All of those who depose no. It appears the eyes have it to hr one as amended to favorably report the house of clark. We will call the roll. Mr. Johnson, aye. R. Nunez, aye mr. T berry, aye. Mr. Reichert, aye. Mr. Rock him, aye. Mr. Smith, aye. Miss jenkins, aye. R. Paulson, aye mr. Marchant, aye. Miss at black, aye. Mr. Reid, aye. R. Kelly, aye mr. Nac, aye. Mr. Holding, aye. Mr. Smith, yes. Mr. Rice, yes. Mr. Schweikert, aye. This malarkey, aye. Mr. Cabello, aye. Mr. Bishop, aye. Mr. Neil, no. R. Levens, no mr. Lewis, no. No mr. Doggett, no. Mr. Johnson, no. Mr. Larson, no. Mr. Blumenauer, no here is the kind, no. Is the past about, no. No. Coley, mr. Davis, no. Ms. Sanchez, hell no. Mr. Higgins, no. If 20, no. Chu, no. Chairman brady, aye. Clerk will call the roll. 16nos. Hr one will be reported to the house of representatives. I asked the staff authorized to make technical informant changes to the bill. Members have two days to file with the supplemental edition. To take a moment to thank the members of this committee for their tireless hours of work on the tax cuts and jobs act. I would like to thank the brilliant drafters, the house office who have been working on this bill for months. Thanks to the Hardworking Team and joint committee on taxation, the attorneys, accountants, support staff would advise us and our staff, without whom, none of this would be possible. The bill is passed, the committee is adjourned. Host good morning on this friday, november 10 and welcome to the washington journal. We feature a newspaper or other publication in our area, today we are talking with people at the washington examiner. Thats where our cameras are. We will talk to an editor and reporter. Before we get to all of that, we will get to headlines and get your thoughts on the news of the day. Taxes, health care, Campaign News is all of the table. If you are a
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