tv Ways and Means Committee Chair Discusses Tax Reform Plan CSPAN September 28, 2017 10:12pm-10:33pm EDT
eastern, hamilton actor and playwright lin manuel miranda accepts the 2017 freedom award. the it or kide of you make friends in different social groups. you learn to work hard to create something greater than the sum of your parts. you learn to trust your passion and let it lead the way. without the arts program i would not be standing here. andout alexander hamilton immigrants that built this country, it is improbable any of us would be here. american history tv on c-span3. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] [captions copyright national cable satellite corp. 2017]
rep. brady: good morning. welcome to the heritage foundation. there's a lot of work left to do this congress if republicans are going to make good on their promise to make america great again. the last major overhaul as we know was in 1986 before the internet, before the ipad, before the iphone, before the boom of the 1990's, before the downturn of 2008. before the emergence of the 1099 economy. a lot has changed and yet our tax code remains essentially the same. double taxing american investment, rewarding those who send jobs overseas while overtaxing those creating jobs here at home. a tax code that fixes these problems won't solve all of our nation's challenges. and the struggles of american businesses are not comprehensive of our nation's broader anxieties. but growth matters and that means tax reform matters. it makes all of the other work that we need to do easier. to get americans back to work, to restore broken communities, to restore opportunity much easier. it's not an end in itself but it's the essential means to those ends.
few understand how important this task is more than the man tasked by his colleagues in the house of representatives to make it a reality. kevin brady, the representative of the eighth district of texas. chairman brady understands the need of american businesses. as a local chamber of commerce official for 18 years and now as the house's top tax writer, chairman of the ways and means committee. our rapidly changing economy has proven unsettling for many americans. it has created a sense around our country that national progress may not mean personal progress, that growth around the world may not translate into growth at home. that sense is a challenge for the cause of free market and of limited government. it's one which all of us must grapple. chairman brady recognizes the project of tax reform cannot be considered in isolation from that challenge, but the economic changes we are experiencing and the inefficiencies of our tax code are fundamentally linked. that problems created by one exacerbates resulting from the others.
heritage is grateful for you taking the time out of your schedule to be with us today. [applause] rep. brady: mike, thank you for the kind introduction. thanks for laying the framework and the dynamics and the situation for tax reform but more importantly thank you for your leadership, for heritage foundation. there's no doubt heritage has helped shape in a major way this bold tax form but the -- reform but through ideas. you helped shaped the generation of tax reformers. not just this. i want to thank you, your team, your experts for helping shape and resolve some of the biggest challenges facing those of us who want an economically stronger and more free america. so thank you very much for that. this is a very exciting week for tax reform.
it's an exciting week to be a conservative. for the past several months the house and senate have been working closely with president trump and his team to develop strong conservative principles for bold, transformational tax reform. yesterday, with the release of our "unified framework," we took a big step forward in making tax reform a reality to the american people. today i'd like to tell you exactly how our unified approach will help middle-class americans and those who want to be in the middle class throughout their lives. today i'd like to tell you at the end of the day, as mike said, that's really what this is all about. sure, unleashing economic growth, enhancing america's competitiveness around the world, those are our top priorities. but we have to remember one very important thing. our economy can't reach its full potential until the hardworking people of this country have an opportunity to reach theirs.
the same time our nation can't be more competitive globally unless our local businesses, workers have an opportunity to compete and win anywhere in the world, especially here at home. we're not just going to get there with the tax code we have now. the tax code that works so poorly for so many americans. think about it. there's some of the best and brightest workers in the world, yet, america's paychecks are stagnant. we have one of the most innovative small businesses and entrepreneurs. yet, fewer jobs, fewer storefronts and fewer startups. that's what's happening around this country. and we as americans, we have a special kind of grit and determination that sets us apart. we take pride in our work. it shows in the fact that american-made products often set the global benchmark for quality and innovation. yet, today we're seeing less made in america products hitting the market and more of our businesses, jobs and manufacturing plants are moving overseas to countries with more modern and more competitive tax code.
if we want to unleash the vast potential this nation through tax reform we have to start by unleashing the individual potential of every american. by giving you the chance to put your talents into action, giving you the chance to build a better life for yourself and your family, to pursue your own american dream whatever that may be and make it a reality. -- that is that the heart of our tax reform. that's what our bold, unified approach is focused on and we have three key objectives making such a tremendous difference for middle-class americans. so specifically, tax reform for middle-class americans means more jobs, bigger paychecks and fairer taxes. i'm excited to tell you a few of our bold ideas to deliver on those objectives for the american people. so let's start with the first one. jobs. under our unified framework, this begins by offering the lowest tax rates in modern history for american businesses of all size and all structures.
we also lower rates for families and we flatten out the code from seven brackets to three. rates for individual and families will all go down. 12%, 25%, 35%. and like president reagan did, you take the lowest rate, 10%, and turn it into zero. the reason we do this is simple. every dollar of income the american families and businesses can keep and put toward their american dream is a dollar that grows our economy, that creates jobs and expands opportunity. on the business side, our job creators and workers will no longer have to bear america's 35% corporate tax rate, the highest in the developed world. instead, we're reducing it to 20% which is the lowest in american history and beats many of our world competitors. for america's small businesses,
our main street job creators, we're delivering a tax rate of no more than 25%. this means our main street job creators will no longer be taxed at the individual rates above 40%. it's a major cut for our local businesses. so after years of having to compete with one hand tied behind their backs, our local businesses and all of the american workers who make them run will have a more level playing field where they can succeed and grow and win. better ensure these historically low rates translates into more job opportunities for middle income americans, we're getting rid of special interest loopholes. we're eliminating those wasteful carveouts and deductions, encourage companies to invest where they can get a new and better tax rate instead of where they can create a new and better job. we're also working to remove provisions that reward companies for sending american jobs overseas. true tax reform is about
rewarding american -- hardworking americans, not rewarding washington special interests. it's about growing our economy from the bottom up by offering the american people a better chance to find a well-paying job and start a fulfilling career, whether you're just fresh out of college or if you want to break into a new line of work. so that brings me to our second crucial objective. bigger paychecks. each of the bold ideas i discussed so far will help americans grow professionally, but just as crucial our tax code helps grow your paycheck and standard of living. as i mentioned we're delivering lower rates for american families so they can keep more of the income you earn. the income you save, the income you spend and the income that you invest. but to truly unlock the growth of paychecks nationwide, we also have to unleash business investment in the united states. that's why for the very first
time we're offering our businesses the ability to fully write off their purchases of new equipment to keep at a higher level in year one. this bold reform, commonly known as full expensing is one i am really excited about. full expensing, year one, we're not just making it easier and affordable for businesses to invest in physical capital like new equipment, software and technology, we're making it easier for them to invest in human capital. we're unleashing investments in you, the american worker. expensing drives productivity and think about this. imagine the tax rates for a business to invest in their workers and in their success by expensing is a zero percent tax rate. this bold reform helps provide americans with new tools they can use to do their jobs better more effectively. greater productivity helps our
businesses grow, serves our customers and creates jobs. just as important, it helps you earn a larger paycheck. a larger paycheck. move up in the workplace. even learn new skills that can benefit you in a future job. i'll finish with this on growing paychecks. we're finally moving america to a modern territorial tax system. unlike the rest of our international competitors, america still forces our businesses to pay u.s. tax on their earnings overseas. these taxes come on top of what our companies are already paying in taxes in other countries. so not only making it more difficult today for businesses to compete globally, our current tax code makes it more attractive to keep their earnings abroad and invest in growing foreign operations. if so, let's stop doing that.
it's past time we move to a 21st century tax system that encourages our businesses to invest their profits overseas into paychecks back home. our third objective, fairer taxes. this is perhaps the most personal. perhaps the most important goal we have. it's about for the first time in decades having the tax code that respects the time and the take-home pay of all americans. especially the middle class. it's centered around delivering a tax code that's simpler, less stressful, more supportive of american families as they pursue what makes you happy in life. first, we're eliminating the current means of special interest loopholes that benefits special interests but offer nothing but confusion for working families. it doesn't stop here. we double the standard deduction. protect more of the first income you earn from taxes and spare the vast majority of americans
the hassle of itemizing. we preserve family focused provisions that help middle class americans with buying a home, raising children, paying for college and donating to your local church, charity or cause you believe in. we're repealing the alternative minimum tax so millions of families no longer have to spend time and money calculating their taxes twice each year. ultimately this delivers a tax code so fair and so straightforward that nine out of 10 americans will be able to file your taxes on a form as simple as a postcard or even as easy as ordering a pizza on your smartphone. imagine that. finally want to make it clear, we are dedicated and determined to repeal the death tax. for the first time in over 100 years, owners of family farms and owners of family-owned businesses won't have to fear double or even triple taxation when they pass down their life's
work to their kids or their grandkids. they'll have real peace of mind knowing that their families can keep building that business, creating more jobs and growing paychecks for families across the country. now with the white house, the house and senate come together with these unified objectives and ideas, we've taken a significant step forward in delivering bold tax reform for the american people. in releasing it yesterday, i men for usas a great o moving forward. after all, yesterday marked the 31st anniversary of when the senate passed the final tax reform bill in 1986, officially sending it to president reagan's desk. in a statement that day, president reagan said, today's historic vote on tax reform marks the last legislative hurdle for the american people who finally have a tax code they can be proud of, one that's fair and simpler for most people, one that encourages growth and is
pro-family. like president reagan in 1986, president trump fully supports the unified approach that we are taking this week. working together, i'm confident, optimistic we'll get tax reform to his desk this year. we certainly have legislative hurdles to overcome before then. in the most immediate term, passing a budget that provides our runway to land bold tax reform on. from there members of the ways and means committee and the senate finance committee will craft tax reform legislation to this framework that delivers more jobs, bigger paychecks and fairer taxes for the american people. that work can't begin seriously without first having a budget. make no mistake, the ways and means committee that i lead will continue to listen as tax reform moves through regular order. taking feedback from the
american people and from our fellow republicans in congress and democrats if they're serious about making the tax code fairer and simpler creating bigger paychecks and more jobs. we welcome that participation. we think it's time the american people once again had a tax code they can be proud of. it's more important we have a tax code that shows we're proud of them and we recognize each america's individual potential and we want them to reach it. at the end of the day tax reform is an opportunity. it's a huge once-in-a-generation opportunity to improve the lives of middle-class americans, millions of young people looking for that next step, millions of seniors who want to live and conclude their lives after a generation of hard work. so we have bold ideas. we're unified. we're ready to get it done. with that i'm ready to take questions.
mike. [applause] >> the chairman is on a tight schedule but we have time for one or two, starting in the back. >> thank you for being here today and talking with us. i would be remiss if i did not who is entirely in the united states, thank you for your attention. we appreciate the work you do. my question is about the individual side of the code. there's been a lot of misinformation about the work you are doing on the 12% rate and what it really means for those currently in the 10% rate. could you please talk about the elevators and help us reach informed people? >> following the lead of president reagan, we flatten out the tax brackets from seven to
three. we lower tackett -- taxes that every level. all of that is incredibly helpful for families find to keep more of what they earn. all of the rates go down, the elevator goes down on every rate. for example, the 15% bracket 12% purity just as president reagan did. bracket 20.he 11% those of modest incomes, the poor and middle income are better off on the plan we bring forward. just to be clear, if i hear any more democrats talking about the autumn rate is going up, i will remind them, they might want to contact vice president joe biden, vice president al gore,
perhaps secretary john kerry, because they voted with president reagan to lower the zero.te to zero, as all.t to >> thank you very much. i appreciate it. >> ladies and gentlemen, thank you for being here, we are adjourned. [captions copyright national cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> c-span's "washington journal," live every day with news and policy issues that impact you. friday morning, a discussion on the budget and health care with douglas holds eakin.
then, we talk about the current amount of federal aid needed for puerto rico. then, travel rules for public officials. be sure to watch "washington journal," live at 7:00 a.m. eastern friday morning. join the discussion. >> also in the morning, senator joni ernst will talk about the -- will talk at the center for strategic and international studies on c-span two. at the same time, the george washington center for cyber and homeland security holds its annual conference looking at high-priority cyber security policy issues. we will have that live on c-span3, online at c-span.org and streaming on the free c-span radio app. >> our look at the republican tax proposal continues with treasury secretary steve