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BPAA Government Affairs

Quarter 3 Newsle er

Federal Tax Reform

President Trump raised expectations assuming no Democrats support the bill, a tax credit to certain companies that
recently about Republicans’ ability to to pass tax reform. Senator Rand Paul (R‐ invest in the U.S., and the Working
complete tax reform, saying it would be KY) is opposed to any middle‐class tax Families Tax Relief Act of 2017 (S. 1371),
disappointing if it took until the end of the hike. Senator Thad Cochran’s (R‐MS) which would expand the earned income
year to have their tax code overhaul on health concerns linger, though he has tax credit and strengthen the child tax
his desk. Republican leaders, especially returned to Washington. Senator John credit. Senators reported that President
the “Big Six,” (Figure 1) have been McCain (R‐AZ) wants to see a regular‐ Trump was focused on a middle‐class tax
optimistic this year of the overhaul’s order, not reconciliation, process for a cut throughout the meeting. Multiple
chances, saying time and time again they bipartisan tax bill. Senator Susan Collins (R adopted amendments also signal
hope to have the plan finalized by the ‐ME) is opposed to repealing both the bipartisan support for a tax bill to put
end of the year. estate tax and SALT deductions, which guardrails on pass‐through income and
Last week, that daring goal became the Big Six has shown intentions of expand the child tax .
more realistic. The House passed its Fiscal eliminating both. Independent‐minded House Ways and Means Committee
Year 2018 budget titled, “Building a Senator Lisa Murkowski (R‐AK) is free Chairman Kevin Brady (R‐TX) is expected
Better America” and the Senate agreed from any political pressure as she is not to release the House tax plan next week.
to the House’s budget in their resolution. facing re‐election until 2022. Needless to The Senate Finance Committee
In the Senate bill is a provision that allows say, Republican leadership is working Chairman Orrin Hatch (R‐UT) has until
the House to avoid conference and just hard to draft a plan that will cross the November 13th to release the Senate
accept the Senate Resolution, which is finish line before the year’s end. version. The House plans to go to markup
what House leadership is planning for this Though a handful of Senators will push the week before Thanksgiving and have a
week if they can reach an agreement. back on certain reforms, whispers of floor vote the first week of December.
Republicans will forgo “regular order” on bipartisanship can be heard at the White The Senate will move ahead quickly as
tax reform, which would have otherwise House. A bipartisan group of Senate Senate GOP leadership is optimistically
mandated that tax cuts be permanent, Finance Committee members met with eyeing a schedule that wraps up voting
not require a bill be deficit neutral, and President Trump at the White House on before December 17th.
ultimately need bipartisan support for its October 18 to discuss the upcoming tax Republicans are relying on this
passage, for the GOP’s preferred route of reform bill. The President expressed aggressive timetable in order to show the
“reconciliation.” interest in a bipartisan bill and Chairman American people that they can get
Though the majority of both Hatch (R‐UT) said a tax markup won’t be something done. The failures of their
Republicans and Democrats agree that everything Democrats want, but it won’t Healthcare bills this year have added a
tax reform is essential, Republican Party be just GOP priorities, either. Senators mountain of pressure, politically, but
infighting is rocking the ship. The Senate Stabenow (D‐MI) and McCaskill (D‐MO) have also been a motivator for
GOP can only afford 3 defections, called the meetings “constructive” and Republican leadership to get a plan
Figure 1
“interesting,” respectively. Both finalized. Speaker Ryan said that Congress
senators face reelection in will be here through the Christmas
The Big Six is comprised of the following 2018 and hail from states that holidays if that is what it takes to get the
Republican leaders:
1. Treasury Secretary Steven Mnuchin President Trump won in the bill to the President’s desk this year.
2. Na onal Economic Council Director Gary Cohn 2016 presidential election.
3. House Ways and Means Chairman Kevin Brady Senator Brown (D‐OH) was
pleased he had the opportunity
4. House Speaker Paul Ryan
5. Senate Finance Chairman Orrin Hatch to discuss his two bills: the
6. Senate Majority Leader Mitch McConnell Patriot Employer Tax Credit Act
(S. 1778), which would provide

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