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.
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.