The “one big, beautiful bill” has passed the House and is now headed to the Senate. The Washington Examiner spoke with Kevin Brady, former House Ways and Means Committee chairman, about how the $4 trillion reconciliation bill compares to the 2017 Tax Cuts and Jobs Act.
The former Texas representative says the new House bill aims to preserve TCJA’s pro-growth provisions while incorporating President Donald Trump‘s campaign priorities, such as no tax on tips. Brady believes the bill will maintain economic competitiveness, especially against China, and is optimistic about its future effect on domestic industry and innovation.
“We wanted to redesign our tax system so our U.S. companies could compete with anywhere in the world, including here at home,” Brady said. “And when they did succeed, to bring those profits back to be invested in new jobs, new manufacturing, new research development, new innovation here in America.”
There are individual extensions of the TCJA that must be renewed before the end of the year to prevent a 22% average tax hike on Americans. When Brady and former Speaker of the House Paul Ryan (R-WI) originally set out to pass TCJA, they aimed to simplify it. The goal was to have nine out of 10 people file their taxes on a page the size of a postcard. While the previous bill didn’t achieve this, Brady says House Republicans have tried to continue the legacy of tax code simplification.
“Over nine out of 10 Americans don’t have to itemize to get their full tax return, full tax benefits,” Brady said. “And from that standpoint, along with simplifications in the small business area, I think we did a good job in that regard.”
Brady feels the Ways and Means Committee is off to a strong start, balancing simplification with new provisions that align with promises made to voters.
“It preserves TCJA and President Trump’s original tax vision,” Brady said. “It makes improvements as well, but it accommodates some of the president’s top priorities from the campaign trail, you know, on taxes or on tips, on overtime, the Social Security issues, trying to recruit or really entice more manufacturing back to the United States.”
Brady argues the new bill has produced strong growth, bringing back $2.7 trillion in stranded profits to the U.S., leading to more jobs, research, and investment. He believes the bill reflects the need to compete with countries such as China and has the potential to do even more in the future.
HOUSE PASSES LANDMARK ‘ONE BIG, BEAUTIFUL BILL’ TO DELIVER TRUMP’S TAX CUTS
“The tax writers wanted to write to the president’s vision,” Brady said. “In the international space, they’re doing what’s right in preserving manufacturing, drawing that back home. The country that wins the future of innovation really wins the economic future, period.”
The measure, which would implement much of Trump’s second-term agenda, will now go to the Senate for consideration.