Grassley on Tax Cuts and Jobs Act
Nov 13, 2017
Senior Member and Former Chairman, Senate Finance Committee
Markup of Tax Cuts and Jobs Act
November 13, 2017
I want to thank the Chairman and his staff for their tireless work in putting together the Chairman’s mark before us today.
We now have a once in a generation opportunity to modernize our tax code in a way that will provide significant middle-income tax relief, while making the tax code simpler, fairer and more pro-growth.
At the heart of this legislation is making good on a commitment to enact significant tax relief for middle-income taxpayers.
On average, middle-class families will see their tax bill shrink by nearly $1,500.
The child tax credit will be increased from $1,000 to $1,650 dollars, which will help ease the financial strain on working families.
By nearly doubling the standard deduction, many lower-income taxpayers will be removed from the tax rolls entirely. Moreover, the tax filing season will become much more simplified for millions more.
Small businesses will also see significant tax relief from the rate reduction on the individual side, but also from an innovative pass-through business income deduction.
This tax relief will incentivize investment back into the business, creating jobs and spurring economic growth. With small businesses responsible for a majority of new jobs, this is a crucial component of a pro-job, pro-growth tax framework.
The Chairman’s mark will also bring our corporate tax structure into the twenty-first century.
Our high corporate tax rate and outdated worldwide tax system has put American companies at a competitive disadvantage globally, costing American jobs.
Our corporate tax system has been strained to its breaking point as we have battled corporate inversions and foreign takeovers. Without action, we can expect this trend not only to persist but grow in coming years.
I know my Democratic colleagues have expressed concerns that we are moving too fast. But, we have been discussing tax reform for years and the time for action is now.
The good work on the part of both Republican and Democratic Chairman of this Committee have helped lay the groundwork to get us where we are today.
I also understand our Democratic colleagues have vehemently objected to the use of reconciliation.
But past practices of this Committee prove reconciliation does not have to be synonymous with partisanship.
I know this from experience. Reconciliation was utilized to pass major tax relief in 2001 while I was Chairman. Senator Baucus fully engaged in the process.
The result was we passed reconciliation legislation out of this Committee with strong bipartisan support by a vote of 13 to 5. So there is no reason for this to have to be a partisan process today.
I yield back to the Chairman.