Tax reform is inevitable but will be passed on a bipartisan basis, the Republican Party’s top tax writer in the House said in an interview aired Tuesday.
Rep. Kevin Brady, the chairman of the Ways and Means Committee with jurisdiction over taxes, said in an interview with CNBC that tax reform is “inevitable” in the wake of his predecessor Dave Camp’s effort to advance legislation lowering tax rates and broadening the tax base by eliminating loopholes.
And ultimately, he added, tax reform legislation would be passed on a bipartisan basis. “The major changes in American government almost always require buy-in from both parties,” the Texan told CNBC’s John Harwood.
Coming to agreement with Democrats on taxes would be difficult for Republicans, who have sketched out plans for bold supply-side tax cuts in recent months.
Those plans, especially the ones advocated by the Republican presidential candidates, are viewed critically by Democrats because they involve larger deficits and significant tax cuts for high earners.
For example, even accounting for the added economic growth it might spur, Sen. Ted Cruz’s tax reform proposal would lose the government nearly $800 billion, according to an analysis conducted by the Tax Foundation. Donald Trump’s would see deficits expand by about $10 trillion over 10 years.
The gulf between Republicans’ plans and Democrats’ priorities has led some Republicans to suggest that tax reform would have to be passed on a partisan basis, the way that President Obama’s healthcare plan was in 2010. Obamacare has remained a politically charged topic, six years after its passage.
Nevertheless, Brady downplayed that possibility, even while acknowledging that there might not be Democratic buy-in during the early stages of legislating. He is working on a tax reform proposal for House Republicans ahead of the election.
The House GOP plan, he said, will have elements that are featured in the presidential candidates’ tax plans.
He called on Congress to make broad changes, arguing that since “tax reform only occurs once a generation, let’s not tweak what we have and call it a day.”
