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Brady Joins Bloomberg to Discuss Tax Reform 2.0 & Tariffs

July 20, 2018

WASHINGTON, D.C. – Yesterday, House Ways and Means Chairman Kevin Brady (R-TX) joined Bloomberg’s Kevin Cirilli to discuss tax reform 2.0 and trade, specifically the potential effects of tariffs on American businesses and workers.

On details of what’s to come in tax reform 2.0:

The economy’s booming so we want to lock in those reforms, make them permanent both on the family and small business side. We also think there’s some areas of the tax code like in helping families and small businesses save more that, frankly, we didn’t get to in tax reform so we’re going to tackle those as well in a very positive way…

“Here’s what we’re going to do. We had a great meeting with the President this week. Early next week we’re going to begin our listening round with our House Republicans, fine-tune, adjust, [and] have this outline out in August. We expect a vote on the U.S. House floor in September.

On the need to continue to change the culture in Washington and not wait every 30 years to do tax reform: 

“We can’t go back to the old ways of doing this every 30 years. Our most successful businesses wake up every day asking themselves ‘how do we become more competitive, more innovative, and better?’ So, Congress better look at America’s tax code, ask ourselves the same thing — ‘how do we become more competitive, innovative, better?’ So, this is starting a different approach on Capitol Hill.” 

On working with the Administration on a targeted approach for unfairly traded products: 

“We do think the President’s right to challenge China in unfair trade practices. We want those to be targeted approaches.  Right now we think it’s too broad and, frankly, sweeps in too much of the economy and creates punishment both here in America and our allies that are unnecessary.”

On the potential effect of tariffs, specifically on the auto sector:

“We’re working with the White House on how to more narrowly target this issue. The other thing is – did you know more than 100 House Republicans have signed a letter basically telling the Trump Administration ‘look you’re right to ask the question do we have a level playing field for automotives and automotive products in America’? Their point to the President is be cautious, this is a major part of our industry. Think about the whole trading relationship, about the importance of R&D here. So, it’s basically saying take a look at the whole issue of national security and economic security as you’re weighing the investigation.” 

“I think it concerns a number of Members, so the question is the investigation looking at the broader issues? National security doesn’t seem to be an area where automotive and auto parts would fit but one, look at the whole picture in this area, secondly, what is the response from the Administration going to be? I think that that will more and better inform us what the impacts are going to be. I think, actually, 232 national security should be used very, very rarely. Perhaps the Administration in their approach here looking at uranium may well have picked an area that that provision was ideally suited for. It’s early to tell but I think that’s an area it may have been designed to do.”