The U.S House of Representatives passed a $4 trillion budget that is considered the first step on tax reform. The budget passed on a 216-212 vote. Twenty Republicans opposed the bill citing debt worries. The bill was originally passed by the Senate and the House approved the new budget without making any changes.
In a tweet President Trump wrote: “Big news: the budget just passed!” House Speaker Paul Ryan stated that tax reform would “re-ignite the sought-after American dream.”
Ryan went on to say that the passing of the bill would “help bring the country back to a healthier, stronger economy, and will make it a place where there’s happiness, freedom, and confidence. The House passed the budget with the goal of bringing the entire country closer to making the dream a reality.” The tax bill text will be released on November 1st.
Chairman of the Ways and Means Committee (the committee is the chief tax-writing committee of the House of Representatives), Kevin Brady, said that by “passing the budget today, the House just gave the legislative runway that will lead to a tax reform that’s pro-growth. The successful vote will let us move forward as quickly as possible on producing an overhaul of America’s tax code. The overhaul is the first ever in three decades.”
Brady also went on to explain that the Committee will start considering the legislation on November 6th. Then the committee will review the bill and make and necessary changes to the package. Once all this is done the piece of legislation will be read on the house floor.
Tax reform is a priority for the GOP, and will record a major win for President Donald Trump. Brady is looking to reduce the tax-free deposits in 401K accounts. He believes this would be able to raise revenues as it will encourage people to open Roth style retirement accounts. President Trump is against limiting 401k contributions.
The goal of the GOP is to refresh a convoluted and ineffective tax code. The GOP’s goal is to have a full re-write of the tax code, and intend to implement metrics, like lower tax rates for businesses, that will kindle economic growth.