House Republican leaders predicted passage of a new tax reform law before Christmas, even though there are still dozens of differences between the House and Senate bills that have yet to be reconciled.
“Tax reform is what people need right now and I’m so thrilled that we are so close to the finish line,” House Speaker Paul Ryan, R-Wis., said Tuesday after meeting with fellow House Republicans privately at the party headquarters near the Capitol. “We are going to keep at it so that we deliver real tax relief before Christmas.”
House and Senate lawmakers are scheduled to meet formally on Wednesday to begin hashing out the differences between House-passed legislation and the Senate bill to reform the tax code.
Both bills are fundamentally similar but there are a handful of significant differences and many smaller ones that must be ironed out so identical bills can be considered in each chamber.
House Majority Leader Kevin McCarthy, R-Calif., told lawmakers the chamber will be in session next week to consider the legislation, perhaps as early as Tuesday if the conference has drafted a final bill by then.
“We look forward to scheduling this bill after they are done with their work, posting it and giving it the appropriate time so everyone can read it,” McCarthy said. “Then passing it and sending it to the president’s desk.”
Ryan defended a one-page Treasury Department analysis predicting significant economic growth from the tax reform bill, which slashes corporate and individual tax rates as well as rates for small businesses. The analysis is far more rosy than one produced by the Joint Committee on Taxation, which predicted the cuts would add $1 trillion in debt.
Ryan said the Joint Tax analysis “gave us the low range” for economic growth, while the Treasury analysis used a model “more reflective of how the world actually works.” Ryan said the Treasury analysis takes into account that when cuts are in place they will produce bigger paychecks, more competitive companies and faster economic growth.
“I do think we are going to have a big positive dynamic effect,” Ryan said.
