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long road to tax reform Andrew Blascovich, Director of Political Affairs, BIPAC
At the start of his administration, President Donald Trump identified several major legislative goals. These ranged from repealing and replacing the Affordable Care Act (Obamacare), to funding for infrastructure, cutting regulations, and tax reform. While the attempt to repeal and replace the Affordable Care Act has stalled, comprehensive tax reform has moved to center stage as the next legislative priority for the administration and Congress. Leadership in Congress and President Trump have all indicated in both messaging and rhetoric that tax reform is a priority.
In Congress, Republicans have said the most recent jobs report showed the need for tax reform that can boost economic growth. In response to this jobs report that showed slowing year over year, House Ways and Means Chairman Rep. Kevin Brady (R-TX) said, “Working together with President Trump and our colleagues in the House and Senate, I’m confident we can deliver pro-growth tax reform this year that improves the lives of all Americans.” Economic indicators like job creation could be the keys to spurring a somewhat stagnant Congress to action. Since the last comprehensive tax reform over thirty years ago, the tax code has not stayed as dynamic as the modern economy has become. Whether the tax reform proposed by President Trump is passed this fall seems very doubtful as the last similar tax reform that was accomplished by President Ronald Reagan took several years to craft and negotiate. The tight timeframe proposed by President Trump and the difficult agenda facing Congress post-recess make tax reform passage for this fall even more doubtful.
President Trump has signaled that he wants to sign a tax reform bill in the fall, but that time line is looking more and more unlikely. Congress returned from the August recess with several pressing issues that need to be passed quickly. These range from the need to raise the debt ceiling to maintain the country’s credit rating, to a spending bill to keep the government operating after September, to Hurricane Harvey and Irma recovery funds. Passing a comprehensive tax reform bill will be further complicated considering that whatever spending bill For questions or more information, is passed will more than likely only fund contact Andrew at blascovich@bipac.org. the government through December. This could impede the ability to debate tax reform as any further government spending will be a point of contention between deficit hawks and immigration advocates, if President Trump follows through that any long-term government funding bill must include funding for his proposed border wall with Mexico. 6
SEPTEMBER 2017 | KAM.US.COM