WASHINGTON, D.C. – House Ways and Means Committee Chairman Kevin Brady (R-TX) today delivered the following opening statement at the House Rules Committee hearing on the Tax Cuts and Jobs Act.
Remarks as Prepared for Delivery:
“Chairman Sessions, Ranking Member Slaughter, Members of the Rules Committee – thank you for allowing me to testify in support of the Tax Cuts and Jobs Act.
“And thank you for your consideration of this historic legislation to deliver meaningful tax relief to families, workers, and job creators nationwide.
“Over 30 years have gone by since the last overhaul of our nation’s tax system. In that time, our tax code has become one of the most complicated, unfair, and uncompetitive in the world. And today it’s impacting nearly every aspect of Americans’ lives – and not for the better.
“The overwhelming complexity of today’s system forces American taxpayers to spend billions of hours and dollars every year on filing their taxes.
“Trillions of dollars of carve-outs and loopholes give favoritism to Washington special interests while hardworking Americans get nothing but frustration.
“And with some of the highest tax rates in the world for American businesses of all sizes, we’re seeing our jobs, manufacturing plants, and headquarters move overseas one after the other.
“Where are they going? To countries that have made their tax systems more modern and competitive over the past three decades while Washington sat on the sidelines.
“For years, we’ve been hearing from families, workers, and job creators across the nation who want tax reform.
“The American people eager for a simpler and fairer system that rewards hard work, grows jobs and paychecks, and allows them to keep more of their hard-earned money.
“With the Tax Cuts and Jobs Act, we have an opportunity to deliver the most sweeping tax overhaul in a generation.
“And this bill is squarely focused on providing more jobs, fairer taxes, and bigger paychecks to Americans of all walks of life – especially low- and middle-income families.
“This bill doubles the standard deduction to protect more of Americans’ paychecks from taxes. It increases the Child Tax Credit to help more families with the cost of raising children. And it preserves important tax benefits to help families afford a home, pay their property taxes, and put their kids through college.
“For the first time in years, a typical middle-income family will see significant tax relief. This family of four making $59,000 per year will get a tax cut of nearly $1,200.
“For the first time in years, that Main Street startup or that local small business will have a tax code that works with them as they grow.
“With this bill, small businesses will pay a top rate of no more than 25 percent on their pass-through business income. That’s a huge difference from today, where they’re paying rates as high as 40 percent.
“And for that new small business making less than $75,000 per year, you’ll have the benefit of a 9 percent rate on your business income. That’s down from 15 percent today. And with this special new rate, striving entrepreneurs will see a tax cut of more than $3,200.
“Finally, for the first time in years America will have one of the most modern and most competitive tax codes in the world.
“Rather than a corporate income tax rate of 35 percent, we’ll have a corporate rate of 20 percent – which beats many of our major international competitors.
“Rather than encouraging American companies to keep trillions of dollars in profits overseas, we’ll have a pro-growth tax system that encourages them to bring this money home – which means more investment in our communities.
“Rather than a tax code that drives good-paying American jobs and manufacturing plants out of our communities, this legislation will make our country a magnet for job creation and innovation – which is exactly what we need for a new era of American prosperity.
“In the end, the Tax Cuts and Jobs Act is a striking alternative to the broken tax code we have today. It represents a bold path forward that will allow us – as a nation – to break out of the slow-growth status quo once and for all.
“I want to thank all of our Ways and Means Members as well as every Member of the House who worked so hard to help make this opportunity for tax reform a reality.
“And, again, thank you to the Rules Committee for your consideration of this important bill. I look forward to answering your questions.”