[inaudible conversations] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] testing microphone. [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] [background sounds] today the first and oldest committee on congress, the ways and Means Committee begins consideration to tax cuts and jobs act. Historic legislation to bring lasting tax relief to workers families and to our job creators throughout this nation. Before bin we begin, we all recognize terrible tragedy, the shooting at the First Baptist church in Sutherland Springs texas. All our hearts are heavy. Our prayers go out to the families and the loved ones, 26 victims as well as the ten texans fighting for their lives as we convene today. Our prayers are with you. It has been or than three decades since americas tax code was reformed under president ronaldhr reagan who was the most sweeping overhaul in american history. Today we face a monumental challenge of our own, coming together to fix a tax code that has become just as broken, complex and unfair as the one Ronald Reagan and congress overhauled in 1986. Our journey to aga tax code built for jobs and paychecks leapfrogs america back into the worldwide has been a long one. Our committee is dedicated substantial amount of time, energy and work to the pursuit of one landmark goal, delivering comprehensive reform to the American People. Weve held over 40 hearings on nearly a every aspect of our nations tax law, but helpful, the harmful and the horrendous. Weve had three Different Committee chairman, and over this time, weve engaged in substance discussion with nearly 60 Different Committee members, republicans and democrats, men and women and progressives and conservatives. All of our efforts have led to this moment, this one moment Committee Action on the tax cut and jobs act. Today, we stand on the doorstep of delivering the most sweeping tax overhaul and more than 30 years. Make no mistake, this day in this historic legislation is not about us, its about providing longoverdue relief to american workers, families and job creators. Its about making americas economy stronger than ever. Under the tax cuts and jobs act, the middle income family of four making 59000. Year will see a tax cut of nearly 1200. That means you can keep more of what you earned to spend and save and invest however you see fit. Under this bill, we are also going to get jobs and paychecks growing again. According to the independent estimates from the nonpartisan tax foundation, the tax cut and job act will lead to nearly 4 higher gdp over the longterm. It will increase wages by over 3 and boost aftertax incomes by more than four. This bill will create nearly 1 million fulltime american jobs throughoutr this country. Its exactly what this means for the American People what it means middle income families will see their aftertax incomes go up by an average of roughly 2600 nationwide. From coasttocoast, the era of stagnant wages is over. In california, middle income families will get an estimate boost to their paycheck of more than 2900. For my constituents in texas, and more than 2500. In newpa york, over 2700. This growth of jobs and paychecks comes directly from the bold reforms included in the tax cuts and jobs act. Under this bill, we deliver the lowest tax rates in moder modern history for American Businesses of all sizes. We take strong action to stop american jobs from moving overseas, and at the same time, unleash investment right here in our community. We give American Businesses andd workers the tax code that will help them compete and win anywhere in these world, but especially here at home. From top to bottom the tax cuts and jobs act is the most transformational bill since 1986. This bill is far more than a question of progrowth tax policy. This is a restoration of basic freedom that all americans deserve. Only special interests now get to enjoy, under todays a broken tax cut. This is freedom from a tax code so complex. Nine out of ten americans will be able to file their taxes using a simple postcard style system. Can you imagine a tax code where each of us knows what our deductions are because we have exactly the same ones. This is liberation from high tax rates that punish hardworking americans while watching special interest get up past. This bill is more than fundamental reform. Its a fundamental departure from attacks system of special interest, by special interest and for special interest. With this bill, there will be real simplicity, real fairness and real freedom for every american. In closing, i want to thank every member of this committee on both sides of the aisle who have contributed to making this day possible. I cannot be more proud to be here with you and i can only hope for a spirit of bipartisan ship over the days ahead. I also know that 435 members of the house have great ideas and some have priorities that are not ultimately included in this bill. Let me assure you, this is the beginning of the tax reform process. We intend to work, improve this bill at every step in the process. I continue to welcome your input. I can also assure you, this is not the last tax markup, i look forward to working with all of you on additional policies to help our families and grow our economy. Having saiddd that, this is our moment to make transformational tax reform a reality for the American People. Lets seize it in a bold way that they deserve. At this time, i recognize the Ranking Member for any opening comments you may have. Thank you, mr. Chairman. We certainly share the empathy youve offered on behalf of those victims in texas. Mr. Chairman, i believe the bill before us today is a bad idea for millions of americans , particularly those in the middle class. The legislation which was crafted solely by the Majority Party behind closed doors, and which was not made public until late last week, it forced millions ofil American Families to watch as their taxes will go up. Thats not what the American People asked us to do and its not something we intend, as democrats, to support. Into thousand one, republicans offered a taxcut of 1. 3 trillion. In 2003, republicans offered a taxcut of an additional 1 trillion, and in 2005, they offered a root repatriation tax holiday. Each time, they promised job growth. However, they took us to the casinono each time without a win so why do we think we will have a win withca this proposal . Nk there offering is based upon the following premise, maybe, maybe there will be 3 growth. Maybe therell be three and half growth, maybe there will be more investment, but we could also say, based on the three examples ive cited, maybe not. We have a million new veterans we need to care for and our military is committed around thee world and we can afford another gamble. Since my first day as Ranking Member, i called upon my colleagues to Work Together on real reform for real people. I agree with my republican colleagues that our tax system is far too complicated, contains parts many loopholes, and holds back American Businesses from competing in the global economy. However, i do not agree that enacting tax reform means giving more benefits to the welloff and wellconnected with the hope that it might trickle down. There is not a single mainstream respected economist in this country that will argue tax cuts pay for themselves. History has proven it does not work. The last time the house worked on a successful tax reform measure as cited, the process was quite different. The tax reform bill in 1986 was written in a bipartisan manner fromrm start to finish. It unfolded over a year starting in oh 82 with countless opportunities to examine the legislation and to make substantial changes. That included 30 hearings on the bill and testimony from 450 witnesses. The markup alone lasted for 26 days. This is a missed opportunity. I truly believe instead of a closed process with republicans used in developing this legislation, if we instead Work Together on a bipartisan basis which included an open debate, we would have and could have developed a bill that was better for our economy, American Business and indeed middleclass families. There are things that everyone on thisldas place can agree on. President obama offered a change along with secretary lou. This could be negotiated and we are missing that opportunity. No we need a tax code that is far less complex and we need a system that encourages innovation and growth. That mr. Chairman should have been the startingat point for good faith bipartisan negotiations. The middle class inho america, they are struggling. For years they have watched as the wages with stagnant and their hours were cut, and it was my help hope in passing tax reform that we might take those americans who feel forgotten and left behind into consideration to build the tax code founded on fairness. This legislation does not do igat. The legislation we are marking up today let the American People down at every step of the lives from birth to retirement. It fails to provide the needed improvements that could assist the hopeful young family and trying to keep their head above water. The student trying to do the right thing by getting an education, the factory worker at the end of a long career just hoping to have enough dignity of which to retire. Ucae we believe that instead of pulling down the ladder of opportunity for those in the middle class and the millions that aspired to it, we should be expandingng that opportunity to make sure everyone has a fair shot. The legislation is felt flawed. It t t will hurt the teacher who spends his own money to buy School Supplies for his students for the young parents who want to know the joy of adopting a child. Students trying to responsibly payback their Student Loans. The wife trying to afford her husbands alzheimers care and the janitor who wants to retire with dignity so he can spoil his or her grandchildren. Let me remind my colleagues for consideration that we have agoy, also just a week was going to go after americas Retirement Savings plans to offset the tax cuts they propose. Eventually, i will remind all that if this doesnt work, we will be back to those very issues and include medicare and Social Security as well. I worry thiswo impact will have a huge influence on our housing market. It scales back the tax benefit of buying a new home. It will inevitably lead to lower home values, it eliminates the new market tax credit, and issues that i have championed during my career. Thats why groups like the National Association of homebuilders oppose this legislation. Mr. Chairman, we can no longer accept the status quo. I hope we will have an opportunity to make america get rich and richer and create more wealth and opportunity for all. We cannot afford to only care about deficits htoto when therea democratic president , including bill clinton and barack obama. I hope at this time we can set aside this bill and start again in a bipartisan manner for a new approach to tax reform that provides real reform to real people and gets the economy growing again. Thank you. Thank you. Before we get started with consideration of hr one, i can say pursuant to rule 19 i intend to roll votes on any vote that is requested. I will give ample notice for when postponed votes will be called. We now proceed to consideration. Without objection it will be considered as read and open from them ats any point. It was distributed in advance along with the green sheet explaining that without objection it shall be considered as read, amendment at any point in considered base tax for purpose of amendment. I will now turn to tom, the chief of staff of the joint committee on taxation to provide the technical disk captive amendment. I would ask that the members hold their questions until after his presentation. He mr. Chairman, i would respectfully offer a motion pursuant to clause for a of house rules, moving to postpone consideration of this bill until next tuesday november 14, and would ask respectively to be heard on my motion for five minutes. I know you feel that the American Public not and i know you feel passionate about this. I felt passionately about it. The last time i asked him to giveth us one additional week, that was defeated by the majority and the majority adopted a bill that President Trump himself declared was a mean bill to use his words. Certainly the president was correct that the healthcare repeal taking way coverage for millions of people was mean, very mean, but i believe today with this legislation, youve gone much further and the damage that would be done to our economy and to our families is much more farreaching. The motion that im presenting at this time request simply that we reconvene next tuesday after you have had an opportunity to notice the first public hearing on this bill in its history. Our f objective is in sight, not delay. Incredibly, for this legislation of such magnitude, after so many years as you indicate, this plan has never had a single public hearing. Nor does any member of the Trump Administration have the courage to come and sit at that desk and answer questions about this bill. Indeed, no Expert Witness has been given the opportunity to explain this bill deficiencies, nor rush to get a bill approved on healthcare without a cbo score or has there been anil opportunity for several independent evaluation in the rush to justice over one weekend that weve had this bill. De i dont know of a time in the history of this committee when it has ever attempted to enact legislation of such breath, with such shallow analysis. And of course, despite our efforts, we still lack the tax President Trump and his 500 plus entities that might show how he and his family will personally benefit. Ti if that were not enough, we avenue an Unexpected Development yesterday. That is, thanks to a free press and investigative journalism, the release of the first information about the paradise papers. Ve that concerns offshore tax avoidance in bermuda and other island tax sites. These are explosive revelations that once again alarm about the inequities of our attack system and the disturbing amount of tax avoidance. When the disturbance avoid their taxes in bermuda or the caymans or someone else, its individuals and Small Businesses and domestic businesses that end up having to pick up the tab. Since the Panama Papers b were released about similar avoidance t last year, weve tried on several occasions to get this committee or subcommitteest to take action, including investigatory hearings. Unfortunately, we have been denied that opportunity. These new reports from yesterday raise new questions about a number of allies, his billionaire buddies and multinational corporations that have so much to gain from todays bills. They wont be smitten their taxes on the postcard. They may be submitting them in a way that allows them even more b tax avoidance than today. Rd i think about the data that shows last year 18 times as much money was reported as profits in bermuda by american corporations than by the entire Gross Domestic Product of the country. Trumps top Economic Advisor who has been the apparent white house lead on this bill,y. Gary , according to one of the reporters who presented this information has been the president of so many offshore firms that they barely fit on the new graphic. Explaining this and having mr. Offshore involved in writing this new internationalec Corporate Tax provision gives us good reason to need to explore one public hearing where this is just creating new loopholes or creating jobs only for tax attorneys and cpas. Mr. Chairman, i would just say, like the rush through trump immigration policy, the healthcare repeal disaster, we need to learn from this doe experience that this bill needs some vetting. It needs extreme betting to find out all aspects of it. If you dont have anything to hide further about this bill, a week in one public hearing will not impair your efforts heard it will afford an opportunity for the American People to understand. Trust me, it will be great just isnt a plan. We cannot afford to trust this bill when no administration witness will come before the committee. I think you for your consideration. Thank you. The questions, those in favor say i. Those opposed, say no. On that i would request a recorded vote. That is requested. Clerk, please call the roll. Excellent. Mr. Johnson, mr. Johnson though. Mr. Nunez, mr. Nunez know. Mr. Reichert, no. Mr. Roskam, no. Mr. B cannon, no. Mr. Smith of nebraska, no. Miss jenkins, no. Mr. Paulson, no. Ms. Black, ms. Black, no. Mr. Reid, no. Mr. Kelly, no. Mr. Meehans, no. Mr. Smith of missouri, no. Mr. Rice, no. Mr. Schweikert, no. Mr. Bishop, no. Mr. Levin, yes. Mr. Lewis, yes. Mr. Thompson, i. Mr. Larson, yes. Mr. Kind, i. Mr. Davis, i. Ms. Sanchez, i. Mr. Higgins, yes. Chairman brady, no. Clerk will report the vote. The motion is not agreed you are recognized. I asked her members hold their questions until after his presentation. Thank you, mr. Chairman and members of the committee. You have before you several documents prepared by the staff of the joint committee on taxation. They describe the underlying bev modifications made by the chairmans amendment and the nature of the substitute. You also have his supplemental information, our revenue analysis and distribution analysis. There are many changes in this legislation, and i will try to give an overview of the number of important points. On the in