WASHINGTON, D.C. – House Ways and Means Committee Chairman Kevin Brady (R-TX) delivered the following opening statement at the House Rules Committee hearing on Tax Reform 2.0.
Remarks as Prepared for Delivery:
“Good afternoon, Chairman Sessions, Ranking Member McGovern, and Members of the Rules Committee. It is an honor to testify before you today.
“Even though it was enacted just last December, the Tax Cuts and Jobs Act has already changed the trajectory of America’s economy – giving us more jobs, bigger paychecks, and historic Main Street optimism.
“It’s critical for hardworking Americans that we keep this strong economic momentum going. That’s why we’ve followed last year’s successful redesign of the tax code with Tax Reform 2.0.
“The three bills that make up Tax Reform 2.0 are designed to help families and small businesses thrive. This starts with locking-in the individual and small business tax cuts from the Tax Cuts and Jobs Act.
“The Protecting Family and Small Business Tax Cuts Act of 2018, which is sponsored by Congressman Rodney Davis, will give American families, workers, and Main Street small businesses certainty.
“It will also continue to fuel the strong economic growth we’ve witnessed over the past year. The Tax Foundation has estimated that making the middle-class and small business tax cuts permanent will create 1.5 million new jobs and increase GDP over 2%.
“The second part of Tax Reform 2.0 is the Promoting Family Savings Act of 2018, which is sponsored by Congressman Mike Kelly. This will help Americans save for key life events by expanding access to new and existing savings vehicles.
“Far too many have struggled to save for key life events such as retirement, education, or unexpected emergencies. In fact, almost 40 percent of Americans say they would not be able to cover an emergency expense of $400.
“ThePromoting Family Savings Act includes expanded 529 savings accounts that give families the flexibility to use their education savings to pay for apprenticeship fees, cover the cost of home schooling, and help pay off student debt. It also includes new Universal Savings Accounts which offer a fully flexible savings tool that families can use any time that’s right for them.
“The Promoting Family Savings Act will also help expanding families by allowing them to access their own retirement accounts on a penalty-free basis to use when welcoming a new child into the family — whether by birth or adoption. And it will allow them to replenish those retirement accounts in the future.
‘The third part of Tax Reform 2.0 is the American Innovation Act of 2018. This bill, which is sponsored by Ways and Means Tax Policy Subcommittee Chairman Vern Buchanan, will help hardworking Americans move a family business from their kitchen table to their first office by allowing them to write off more startup costs in their early years.
‘This will help America’s risk takers, create jobs, invest in their communities and continue strengthening America’s economy.
‘These three Tax Reform 2.0 bills will help ensure our code continues to allow our economy to grow. That’s why we have worked so hard on these bills – to change the culture of Washington from one that waits an entire generation to fix a broken tax code, to one that keeps our code ahead of the pack. Never again will America fall so far behind our competitors.”