Witnesses Testify at Congressional Committee Tax Reform Hearing

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The House Ways and Means Committee held a full committee hearing on tax reform on May 18th. Five business leaders offered their views on how to reform the current tax code.

 

In their statements and questions, Democrats and Republicans on the panel disagreed on many issues.  The chair, Kevin Brady (R-TX) said "President Trump is leading the charge for bold tax reform that will unleash the growth of jobs and paychecks nationwide."  Ranking member Richard Neal (D-MA), called the current code complicated and broken but insisted that reform must "benefit our nation's middle class."  Members of both parties agreed that tax reform was important to spur economic growth.

 

The witnesses cautioned against delays in overhauling the code.  Steven Rattner of Willett Advisors LLC said "having done nothing for 30 years in terms of comprehensive tax reform has cost us billions of jobs and billions of dollars."   Zachary Mottl of Atlas Tool Works Inc. testified that enacting the Border Adjustment Tax found in the House GOP Blueprint proposal is essential to reclaim a competitive edge in international trade.  Douglas L. Peterson of S&P Global Inc. argued for permanent changes rather than the short-term measures enacted in recent years, saying "permanence creates certainty; certainty reduces risk."

 

Tax reform efforts continue on other fronts as well.  The Senate Finance Committee will hold its own hearing on May 25th.  Treasury Secretary Steven Mnuchin told the Senate Banking Committee that one hundred employees of the Treasury Department are working on tax reform.

 

LM Cohen & Co. remains dedicated to keeping our clients and friends informed of the latest tax reform proposals and will continue to alert you to important developments as they occur.

 

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