WASHINGTON, D.C. – Ways and Means Committee Chairman Kevin Brady (R-TX) delivered the following remarks upon offering his second amendment to the Tax Cuts and Jobs Act:
“I’m pleased to offer this amendment to the Amendment in the Nature of a Substitute on behalf of the majority on the Ways and Means Committee. Similar to the amendment I offered on Monday, this amendment will refine several provisions in the Tax Cuts and Jobs Act. It also takes action on three crucial priorities – helping American families, providing tax relief to Main Street startups, and increasing American competitiveness.
“Let’s start with helping families.
“First, among other important improvements, this amendment will preserve the adoption tax credit.
“Now, I know Americans who adopt are not doing this for the tax benefit – they’re doing it because they want to provide a safe and loving home for a child.
“I know from personal experience that the adoption process can be expensive and time consuming, and ultimately, so rewarding.
“And I know the adoption tax credit is important to many Members of our Committee, Republicans and Democrats – and we’ve had very thoughtful discussions about it over the past few days.
“So, with this amendment, we’re proposing to preserve this credit – a priority led by Ms. Black, Mr. Kelly, and so many others. This will ensure that parents can continue to receive additional tax relief as they open their hearts and their homes to an adopted child.
“I’d also like to note that this amendment includes a provision led by Ms. Jenkins that will help families with disabled children save for their future.
“Specifically, this provision will allow them to rollover excess assets from a tax-advantaged 529 savings account into an ABLE account – which are designed to help Americans with disabilities lead successful and secure adult lives.
“This amendment also makes clear that we are preserving an existing tax benefit that allows military families to deduct the cost of moving expenses.
“Next, to help small businesses, this amendment offers several important provisions to make it easier for them to succeed and grow. This includes providing a new, low tax rate for businesses earning less than $75,000 in income.
“These are our Main Street startups who fuel innovation and job creation in communities across our country. And I’ve heard from just about every one of our Republican Members – from Mr. Johnson to my right, all the way down the dais to Mr. Bishop in front of me – that we’ve got to do more to help them thrive.
“So, with this amendment, we’re taking action. We’re going to provide our Main Street small job creators with a nine percent marginal tax rate in the bottom tax bracket rather than the 15 percent it is today.
“This additional rate relief will allow American entrepreneurs to keep more of their income in those crucial early years – that time period that really makes or breaks a small business.
“We want more small business success stories in America, and this special nine percent rate for our startups will help make that possible.
“Finally, this amendment includes provisions to further refine our international tax reforms to help accomplish our twin objectives of increasing American competitiveness while protecting the U.S. tax base and growing American jobs.
“These provisions come in addition to lowering America’s corporate rate to 20 percent, moving to a modern, ‘territorial’ tax system, and providing tough but fair rules to prevent American jobs from moving overseas.
“Is this area of the code complete? Of course not. We have much work to do as we work to ensure our American businesses can compete and win anywhere in the world. And foreign companies who want to invest in America to create jobs as well are addressed in a tough but fair manner. And other areas of our [economy], including insurance – we continue to examine the provisions in the original bill, make refinements and changes moving forward. I’m confident at the end of the day, we will strengthen all sectors as well as insurance.
“Over the past several days, we’ve had numerous discussions on many of these same priorities. These are areas where members on both sides of the aisle said we need to take a second look. We did. And now I’m offering this amendment to put them in the bill.
“Just as important, with this amendment we can include these important priorities and meet our reconciliation instruction – ensuring that we can get this bill and this long-awaited tax relief to the House floor as soon as possible.
“And, to the extent that members have additional ideas to help families and strengthen our economy, I look forward to working with you on those after our work on the Tax Cuts and Jobs Act is finished.”
CLICK HERE to read the amendment offered by Chairman Brady.
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