Showing posts with label House Ways and Means Committee. Show all posts
Showing posts with label House Ways and Means Committee. Show all posts

Wednesday, March 22, 2017

​Taming​ ​the​ ​Tax​ ​Code - Brendan Cody, GWU student and Impact Investing Intern

Tax​ ​reform​ ​will​ ​continue​ ​to​ ​be​ ​a​ ​major​ ​issue​ ​over​ ​the​ ​next​ ​several​ ​months. Both​ ​Congress​ ​and
President​ ​Trump​ ​have​ ​expressed​ ​a​ ​strong​ ​interest​ ​in​ ​reform.​ ​

A ​panel​ at George Washington University titled ​“A​ ​General​ ​Perspective on​ ​Taming​ ​the​ ​Tax​ ​Code:​ ​What​ ​Yesterday’s​ ​Reformers​ ​Can​ ​Teach​ ​Today’s​ ​Reformers”​ ​provided great​ ​insight​ ​into​ ​the​ ​methods​ ​and​ ​issues​ ​of​ ​reform​ ​from​ ​the​ ​perspective​ ​of​ ​the​ ​House​ ​Ways​ ​and Means​ ​Committee.

​Bill​ ​Archer(R-TX)​ ​and Charlie​ ​Rangel(D-NY)​ ​are​ ​both​ ​former​ ​committee​ ​chairmen​ ​and ​were​ ​members​ ​of​ ​​Ways and Means in 1986 when​ ​the​ ​tax​ ​code​ ​was​ ​last​ ​reformed​.​

​Rangel​ ​emphasized​ ​the​ ​importance​ ​of​ ​the​ ​president in​ ​getting​ ​tax​ ​reform,​ ​specifically noting ​that the​ ​President’s​ ​ability​ ​to​ ​inspire​ ​confidence​ ​among​ ​the​ ​public​ ​and​ ​the Congress​ ​can​ ​be​ ​decisive​ ​in​ ​the​ ​fate​ ​of​ ​a​ ​bill.​ ​Archer​ ​agreed​ ​with​ ​this​ ​sentiment, noting that​ ​President​ ​Reagan​ ​played​ ​a​ ​vital​ ​role​ ​in​ ​the​ ​Tax​ ​Reform​ ​Act​ ​of​ ​1986​ ​by​ ​taking​ ​the​ ​issue​ ​to​ ​the public,​ ​while​ ​President​ ​Obama​ ​did​ ​not​ ​campaign​ ​for​ ​tax​ ​reform.​ ​

While both Rangel​ ​and​ ​Archer​ ​agreed​ ​on the​ ​role​ ​of​ ​the​ ​president,​ ​they ​disagreed​ ​on​ ​the​ ​intended​ ​outcome​ ​of​ ​reform.​ ​When​ ​Mr.​ ​Archer expressed​ ​his​ ​disdain​ ​for​ ​the​ ​current​ ​tax​ ​code​ ​that​ ​allows​ ​47%​ ​of​ ​people​ ​to​ ​not​ ​pay​ ​any​ ​income taxes,​ ​Mr.​ ​Rangel​ ​argued​ ​to​ ​“Never​ ​use​ ​the​ ​tax​ ​code​ ​for​ ​social​ ​policy.”​ ​Mr. Rangel's  ​is​ ​a​ ​potent​ ​message as​ ​the​ ​debate​ ​surrounding​ ​reform​ ​in​ ​the​ ​coming​ ​year​ ​will​ ​almost​ ​certainly​ ​involve​ ​discussions​ ​of social​ ​policy​ ​masquerading​ ​as​ ​tax​ ​policy.

In​ ​addition​ ​to​ ​former​ ​Chairman​ ​Bill​ ​Archer​ ​and​ ​Charlie​ ​Rangel,​ ​the​ ​panel​ ​featured current​ ​Ways​ ​and​ ​Means​ ​Committee​ ​chairman​ ​Kevin​ ​Brady (R-TX)​ ​and​ ​ranking​ ​member​ ​Richard Neal (D-MA).​ ​Chairman​ ​Brady​ sated that he ​understands​ ​the​ ​tremendous​ ​challenges​ ​reform presents,​ ​but​ ​also noted​ ​that​ ​political​ ​polarization​ ​exacerbated​ ​by​ ​the​ ​media​ ​climate​ ​and​ ​instant​ ​access​ ​to information, factual​ ​or​ ​not,​ ​will​ ​add​ ​to​ ​the​ ​problems​ ​of​ ​passing​ ​complex​ ​legislation.​ ​Additionally, Brady​ ​believes​ ​that​ ​this​ ​bill​ ​must​ ​be​ ​farther-reaching​ ​than​ ​the​ ​1986​ ​reform, since that  ​only​ ​involved changes​ ​to​ ​​ ​the​ ​tax​ ​rates,​ ​but​ ​that​ ​the​ ​BAT,​ ​simplification​ ​of​ ​the​ ​code​ ​and​ ​other​ ​policies​ ​were equally​ ​important.​ ​

Ranking Member ​Neal​ ​believes​ ​​tax​ ​reform​ ​could​ ​be​ ​hindered​ ​by Congresspersons​ ​who​ ​are​ ​more​ ​interested​ ​in​ ​being​ ​crusaders​ ​than​ ​legislators​ ​and​ ​who​ ​will​ ​take​ ​one line​ ​of​ ​the​ ​bill​ ​they​ ​disagree​ ​with​ ​to​ ​denounce​ ​the​ ​entirety​ ​of​ ​the​ ​legislation.

All​ ​four​ ​panelists​ ​agreed​ ​on​ ​the​ ​importance​ ​of​ ​bipartisan​ ​legislation.​ ​The​ ​bipartisan nature​ ​of​ ​the​ ​1986​ ​reform​ ​helped​ ​its​ ​passage​ ​and​ ​staying​ ​power​ ​as​ ​any​ ​legislation​ ​passed​ ​by​ ​one party​ ​would​ ​have​ ​been​ ​immediately​ ​repealed​ ​when​ ​the​ ​opposition​ ​regained​ ​power.​ ​Mr.​ ​Rangel argued​ ​that​ ​while ​details​ ​may​ ​change​ ​with​ ​the​ ​political​ ​climate,​ ​the​ ​importance​ ​of​ ​trust​ ​will always​ ​remain.  

Friday, June 5, 2009

Upcoming Testimony before the House Ways and Means Committee

We expect to testify soon before the Committee on Ways and Means of the US House concerning the NEW MARKETS TAX CREDIT PROGRAM and why "Minority Entities Are Less Successful in Obtaining Awards Than Non-Minority Entities." According to a report issued by the Government Accountability Office (GAO), "From 2005 through 2008, minority-owned CDEs were successful with about 9 percent of the NMTC applications that they submitted to the CDFI Fund and received about $354 million of the $8.7 billion for which they applied, or about 4 percent. By comparison, non-minority CDEs were successful with about 27 percent of their applications and received $13.2 billion of the $89.7 billion for which they applied, or about 15 percent." We expect that the hearing will be held mid-June, and will note the date and location in a blog post.