The House Budget Committee on July 18 released its fiscal year (FY) 2018 budget resolution, which will serve as the legislative vehicle for comprehensive tax reform, according to top House Republican lawmakers. The budget includes reconciliation instructions for tax reform.
The legislative text of the budget describes its policy on tax reform to include five distinct areas. Those areas are described as: simplifying the tax code to promote fairness for American families and businesses; substantially lowering tax rates for individuals and consolidating the seven tax brackets into fewer brackets; repealing the Alternative Minimum Tax; reducing the corporate tax rate; and transitioning the tax code to a more completive system of international taxation.
“Today, the House Budget Committee introduced the crucial vehicle that will drive permanent, pro-growth tax reform over the finish line this year,” Ways and Means Chairman Kevin Brady, R-Tex., said in a July 18 statement. “This budget resolution gives us the green light to move forward with tax reform legislation…,” he added.
Meanwhile, Democratic members of the House Budget Committee are criticizing the budget for providing “huge tax cuts for millionaires, billionaires, and corporations at the expense of everyone and everything else.” Ranking member John Yarmuth, D-Ky., has called the GOP budget “reckless,” and criticizing the measure for giving tax cuts to the wealthy.
In other news, the House Ways and Means Tax Policy Subcommittee is slated to hold a July 19 tax reform hearing. The hearing is scheduled to focus on the individual side of tax reform.
By Jessica Jeane, Wolters Kluwer News Staff
Ways and Means Press Release—Brady: FY18 Budget Resolution Crucial Step Forward for Tax Reform
Text of Legislative Language of the Fiscal Year 2018 Budget Resolution
Summary of the House FY 2018 Budget – Building a Better America
House Blueprint: Building a Better America – A Plan for Fiscal Responsibility