House and Senate ConferenceCommittee Members met to discuss tax reform the pat s bills. The senator orrin hatch who chairs the finance Committee Told reporters he and his republican colleagues had reached the general agreement on how they plan to overhaul the nations tax code. The Senate House Committee will come to order. I am deeply honored to chair this Conference Committee, the first tax reform Conference Committee in 31 years and to be here with you as we move forward with this historic effort. Before i deliver my opening remarks, i want to take a moment to welcome everyone and discuss the format of todays meeting. I also would like to thank the members of congress joining us today from both sides of the of the and both sides aisle. I think all the members of the house and senate and our professional staff who worked so for the pasteform several years. In particular, the members of the ways and Means Committee and senator hatch in the finance committee. We will begin todays meeting with the opportunity for each country to make an Opening Statement of up to three minutes. In order to ensure each country has an opportunity to speak, i will be enforcing the time limit. Once open statements are complete, we will turn to the chief of staff of the joint committee on taxation to provide a brief overview on the house taxSenate Versions of the cuts and jobs act. After his presentation, conferees may question him during that time and also in three minute increments. Finally, the chair will entertain unanimous consent request and statements and other materials into the record for this Conference Committee. For that i recognize myself purposes of delivering an Opening Statement. Today, we are coming together as a Conference Committee with one single or mission in mind. Finalizing the tax cuts in the act and delivering transformational tax reform for the first time in three decades. We will consider the best ideas from the house and Senate Passed legislation and will continue moving closer to one final progress tax reform bill. Throughout our nearly sevenyear journey on tax reform, we had to make many choices with these goals in mind. For the first time in history, we created a tax bill built for growth and lead america back into the world. We rejected simply tweaking a few provisions of washingtons monstrous tax code and calling it a day. We put it on the table and went bold for the American People. To make america competitive again worldwide, we rejected simply aiming for average among our local competitors. Instead, we insisted on designing one of the most competitive for the world and the American People. Would wouldt it would stand for and who it would stand for. People. The american reflectsbefore us now all these decisions. More than that, it embodies the principles we have been committed to since the beginning. This bill is a bold departure from the broken tax code america has today. It reduces the tax rate for all americans of all walks of life and delivers the lowest rates in modern history for businesses of all sizes. Tax system a modern that is tremendously competitive. One that will leapfrog america among our global competitors and unleash the growth of jobs and paychecks here at home. Above all, it makes clear the americas newt tax code would be simple, fair, and focused on helping the American People. It, thedent reagan put only special interest that counts. All the work has brought us to this moment and we have more important work ahead of us to finalize the bill. Ets not waver now lets not give into the washington status quo not when tax reform is so close. This is our once in a Generation Opportunity to deliver historic tax reform that we and the American People can all be proud of. If we remain committed to the principles that have guided us from the beginning, going bold, americang competitiveness, and making our tax code simpler and more fair for all americans, i am confident we will. I recognize senator hatch for his opening remarks. Thank you. I am happy to be here with anybody and this is one of the truly important aspects of our an openthat we can sit meeting in front of everybody and talk about what we will do with regard to tax reform. I want to covenant chairman brady and complement chairman brady in the house members for the work they have done. They have done a tremendous job, both republicans and democrats and i am proud of them. I want to come clement complement our senators com pliment our senators. We have good people and hopefully we can bring this to closure and do it in the best interest of our country. Thank you, mr. Chairman, that is enough for me. Recognize richie neal. I woulduld be like like to be recognized on a point of personal privilege. I would like to move that Conference Committee postpone its work and activity until the new senator from the state of alabama is sworn in to office so he might cast a vote based on the president that was applied the precedent that was allowed. Notr the motion is available and we will continue. Might i be allowed to question the ruling . Chair i will recognize you for your Opening Statement. Nights of last election i do not believe we should be holding todays meeting. In fact, it is imperative that we respect the will of the people of alabama and delay any further action on this tax bill until senator elect jones can be seated. The situation is not unprecedented. As recently as 2010 my state of elected scott brown to succeed ted kennedy. Following the election, we heard strong words from senator mitch mcconnell, the leader of the Republican Party in which he theed and frankly, i think message of the moment is the American People across the country are asking us even in the most liberal state, massachusetts, to stop this health care bill. What did democrats do question mark we waited and respected the will of the people. Even when it was hard against our own politics, democrats did the right thing and a lot senator brown to cast the final vote. I hope we can do the same thing today. Deal for thes a American People. This legislation raises taxes on onions of middleclass families, increases the National Debt by two point three chilean dollars, and eliminates deductions that help americans that help americans by home and go to college. With alzheimers and students, this bill punishes americans of every stage of life. As the New York Times reported given the shift as to how they will tax income the tax code substantially will punish the wage earner for providing and provide massive benefits to shareholders. This is a missed opportunity. Democrats will focus on tax reform that provides relief to all members of the middle class with the tax cut that, unlike the republican bill in front of us today, would actually provide them with some relief. Our republican friends claim that the bill helps Small Businesses. That is not what i am hearing back home who have been excluded from much of this relief. I take into account the unique circumstances for puerto rico and the version islands. They are still in the process of rebuilding and putting the pieces of their lives back together. The last thing they need is to get hit again. Conception on their cards and goingill after theyre after medicaid and Social Security to justify the tax cut. They argue we can no longer for these programs after yanking to print the 2. 3 trillion from federal expenditure. I hope we will have a full discussion and debate on the potential that has been suggested in media accounts that the top rate is being from 39. 6 to 37 to accommodate individuals in america who are now complaining about the elimination of the state and local tax deduction. I yield back. Chair thank you. Senator wyden. Senator wyden the American People are witnessing a master class in how one Political Party relying on secrecy, distortion, and brute force can muscle an unpopular corporate giveaway. This is the ultimate betrayal of the middle class. It does not give middleclass americans the tax cuts they deserve now and it takes away medicare and Social Security later. News just broke that republicans have reached a final agreement. Thats understand what is happening today is a sham area this is an obvious attempt to lend credibility to a baseless republican talking point about the following regular order. No one mistakes the conference for real debate. Not when republicans with special interests lobbyists have wrapped up the real cost in secret. They will throw parties on k street while middleclass parents are struggling to determine if their families are going to be among the millions of losers. From the top, republicans have had an undivided focus on delivering the sweetest possible deal to the multinational corporations and the powerful. Permanent corporate break, huge new loopholes and attack site on middleclass taxpayers and big new incentives for corporations to ship jobs overseas while tens of millions of americans either go without health care or see their premiums jump. The details still leak out but more bad news for the middle class. Come with anl will astonishing price tag and it is bound to do a terrible job getting help to those who need it. It is clear now that republicans decided to pass on a final opportunity to take a different tack. To protect the middleclass from harm. They reportedly settled on bigger breaks for those at the top. Budget busting gift to the donor class and corporations. The deficit hawks were quiet at first. The prospect of an unpaid for tax bill piling onto the National Debt. But they are screeching again seizing on the deficit as a pretax to cut medicaid, Social Security, antifungal or programs antihunger programs and more. Not have to be this way. The tax code is broken. Democrats agree. 17 moderate democrats asked for a bipartisan bill. I have written as the chairman knows to full bipartisan tax reform bills. It did not have to be this way and it is not too late for bold members on either side to reject this reckless partisan process, work on a bipartisan basis as Ronald Reagan did to put the interests of the middleclass first. I yield the balance of my time as we discussed. Senatorlike to ask murrays statement be entered. Objection. I have a motion in writing pertaining to the format of todays meeting and i would urge its consideration. Chair under the rules the motion is available. We will continue. Is it youre rolling you will not permit the motion to be presented . I would respectfully appeal the ruling as the chair. But irstand your desire would urge my motion. In that case i would offer another motion area motion at the desk. It is a privileged motion under the senate and house rules and would urge its consideration at this time and it is consistent with the roles of the house and senate and of this conference. Chair we will return to regular order. Regular order is to consider privileged motions when they are ordered even when you do not want to consider them. We are under in we are under conference and senate rules, not putin rules. Chair there are a few rules that govern how we conduct a Conference Committee. We have one Public Meeting which we are doing today. As i advised in advance, the process this meeting purpose of this meeting is to make statements and ask technical questions of mr. Barr told. I have a highly privileged motion under the house and senate rules that are applicable calling for an adjournment under certain conditions and i urge the motion. Motion isrcian not available. You will not interrupt again until he continued the hearing. I will interrupt into you honor the motion and follow the rules. It is regular order. Mr. Nunes, you are recognized. Mr. Nunes thank you for your leadership and continued dedication to reforming our nations broken tax code. We are on the brink of fundamentally transforming our tax system and i want to take this opportunity to reiterate what i believe should be included in the final bill. Special interest in washington are constantly adding new provisions to the tax code, making it increasingly complex and rife with loopholes. The current tax code distorts Business Decisions as a result and makes it nearly impossible for Small Businesses to compete on the level playing field. The final bill reported out of this committee must strive to wipe the tax code clean and replace it with simpler and more transparent rules. In addition to policies promoting simple vocation measures aimed at unleashing Small Business growth should be included in the final package. One of this is full and immediate expensing for clement new and used which i have etiquette advocated for. This would provide a strong investment incentive to create jobs, boost wages, and spark Economic Growth. Another strong inventive inentive which was included hr one is extending the lower passthrough rate of 25 to passive business income. This would provide incentives for entrepreneurship and overall Business Investment for startups and Small Businesses. The provisions i have mentioned will create Economic Growth, a goal for which my republican and democratic, colleagues have pledged their support. We must ask ourselves whether we want to stick with todays complex punitive and unfair tax code, or take the courageous step necessary to unshackle our economy to the benefit of all americans. With that, i yield back. I would have a question if i might if there is an agreement republican side regarding the Conference Committee. Will we have an opportunity to see that . We will be asking mr. Barr told barthold questions. What i am hearing from the lobbyists downtown who are circulating the bill, im assuming that they are accurate. The rules of the Conference Committee the Committee Report is filed. The public and members will have full opportunity to examine that report and under the regular andess, a vote in the house senate. When are you anticipating that being filed . Chair the timetable will be driven by the completion of the Conference Committee report. Asking it be before questions of staff so we know what we are asking about . It is difficult. I appreciate we are here. Chair i anticipate the committee will file its report at the end of this week. But today we are asking questions . Could you give us a hint to we are asking what we are asking questions about question mark chair the Senate Passed a bill and the house did and so we will be questioning mr. Barthold on the two bills. Thank you for convening this important meeting. This is an important day as we take another step closer toward enacting the historic tax reform that will help boost americas economy, that will make the system simpler and fair and it will put more money in peoples pockets. This will help grow the economy, create more jobs, and it will raise wages for hardworking families. The time for reforming our tax code is long overdue and our economy, businesses, and American Families are paying the price. Since we last transformed our tax code 30 years ago globalization, the emergence of new technologies, changes in the ther force have transformed way our economy operates. It is past time for us to act to modernize our tax code so that our nation can remain 20 firstve in the century economy. Our current code is an outdated mass that is hurting American Workers and holding our economy back. That is why we need tax reform that will ensure the competitive footing of our businesses and make our system simpler and fair and 11 people to keep more of what they earn. The tax cuts and jobs act will do that. It will provide tax relief for hardworking americans and make changes to our tax codes that businesses large and small need to help grow the economy and create jobs. If you care about jobs for if you care about American Companies staying here and competing globally, you should care about reforming our business tax system. America has the fourth highest Corporate Tax rate in the world. We need to encourage companies to remain in the u. S. And bring back their overseas money to increase the number of jobs in the u. S. Lowering our uncommonly high noncompetitive tax rate would be one of the quickest ways to solve that problem. It is time to make america a more inviting place to invest, to business, and create jobs. It would provide relief to small familyowned businesses. They employ the majority of the private sector particularly in wyoming. These are part of the backbone of our communities and we want to have the opportunity to grow and provide more jobs. I join my colleagues not only is the chairman of the Senate Budget committee and the member of the finance committee to my but also as an accountant and former Small Business owner. I believe this bill will make critical and lo