In a purely symbolic move, and just hours after the release of the Senate Finance Committee Republican staff tax reform analysis, House Ways and Means Chairman Dave Camp (R-MI) this afternoon released his draft tax reform legislation as HR 1, a bill number that had been reserved for tax reform since the beginning of this congress. With the current congress set to finish its work any day now, the move by Camp was intended to memorialize the work he and his staff have done over the past two years to draft a tax reform proposal. The congressman said today that he has no plans to have the bill added to the House calendar before it adjourns.
The bill contains the same bond restrictions as before, including eliminating private activity (and non profit) bonds.
For reference, the bill is attached along with an introductory statement from Rep. Camp, along with a bill summary. A press release is below.
As you know, tax reform could take more than one congress to achieve, but this is the opening move by congressional Republicans as they prepare to start the debate on tax reform next year.
An In Depth Analysis By the Senate Finance Committee Republican Staff
WASHINGTON - At over 70,000 pages in length, the U.S. tax laws are a labyrinth of red tape. The current tax system is anti-competitive, complicated, unfair, and is hurting economic growth. Since the code was last reformed nearly 30 years ago, members of Congress from both sides of the aisle have put forward innovative ideas and introduced various plans and proposals to remake the broken tax code to better meet the challenges of today.
The following in-depth analysis by the Senate Finance Committee Republican Staff titled “Comprehensive Tax Reform for 2015 and Beyond,” outlines the issues policymakers will have to confront in the effort to reform our nation’s tax code and aims to further educate and inform this critical debate.
“If we are ever going to make tax reform a reality, both parties will have to come together to get it done. That will mean Republicans and Democrats in both the Congress and the White House working together toward a common goal that will benefit the American people and help get our economy moving on a better course,” said Finance Committee Ranking Member Orrin Hatch (R-Utah). “This report is intended to provide background on where we are and where we have been with regard to our tax system as well as some possible direction on where our reform efforts should go in the near future. I believe it will be helpful both to tax experts and academics, as well as those who do not spend all their days steeped in these issues. I am willing to work with anyone – Republican or Democrat – to fix our country’s tax code and I hope this report will be viewed as an invitation to work together on these critical issues.”
Washington, DC – Today, Ways and Means Committee Chairman Dave Camp (R-MI) officially introduced H.R. 1, the Tax Reform Act of 2014. This proposal formalizes the tax reform discussion draft released on February 26, 2014, without modifications. Below are excerpts from Chairman Camp's statement submitted for the Congressional Record.
“At its core, the Tax Reform Act of 2014 is about making the tax code simpler and fairer for hardworking taxpayers. I believe every taxpayer should be able to do his or her taxes without fear that someone with better accountants or lawyers is getting a better deal. This legislation does that by ensuring that virtually all taxpayers would pay the least amount of taxes without having to keep track of every receipt and record and live in fear of an IRS audit. This legislation makes the Code more effective and efficient by getting rid of narrowly targeted provisions to lower tax rates across the board. This will enable small and large businesses alike to expand operations, hire new workers, and increase benefits and take-home pay.
“I hope that the formal introduction of this proposal in the House today will help spur further action on this critical issue in the 114th Congress.”
Based on analysis by the independent, non-partisan Joint Committee on Taxation (JCT), without increasing the budget deficit, the Tax Reform Act of 2014:
- Creates up to 1.8 million new private sector jobs;
- Allows roughly 95 percent of filers to get the lowest possible tax rate by simply claiming the standard deduction (no more need to itemize and track receipts); and
- Strengthens the economy and increases Gross Domestic Product (GDP) by up to $3.4 trillion (the equivalent of 20 percent of today’s economy).