Kelly chairs Ways & Means hearing reviewing Tax Cuts & Jobs Act, tax policies
WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), Chairman of the Ways and Means Subcommittee on Tax, led a hearing titled "Tax Policies to Expand Economic Growth and Increase Prosperity for American Families." The hearing examined pro-growth policies included in the 2017 tax reform law, known as the Tax Cuts & Jobs Act (TCJA), and other proposed tax legislation. The hearing also explored tax policy ideas as many provisions of TCJA are set to expire in 2025.
During the hearing, Rep. Kelly highlighted the local impact of TCJA's success -- the bipartisan Opportunity Zone legislation that spurred over $100 million in economic development in downtown Erie, Pennsylvania, what was once home to the poorest ZIP code in the United States.
Witnesses during Wednesday's hearing included:
- Alan Auerbach
Professor of Economics and Law, University of California Berkley - Alan Viard
Senior Fellow Emeritus, American Enterprise Institute - Grover Norquist
President, Americans for Tax Reform - Steve Hayes
Chairman and President, Americans for Fair Taxation - Leonard Burman
Institute Fellow, Urban-Brookings Tax Policy Center
KEY EXCERPTS FROM REP. KELLY'S OPENING STATEMENT (as prepared for delivery)
- "In the two years after TCJA – real median household income increased by $5,000 – which exceeded income growth during the prior 8 years combined. To protect Main Street -- The Small Business Deduction in TCJA created over $66 billion in tax savings for Main Street businesses. These policies created a strong foundation for U.S. economic growth and prosperity in our small businesses."
- "To protect working families -- Wages in this country increased by 4.9% for 2018 and 2019 – the fastest two-year growth for real wages in 20 years. According to the Federal Reserve, low- and middle-income families received the largest increase in wealth during 2018 and 2019. More than 6 million were lifted out of poverty."
- "Opportunity Zones created growth. And Opportunity Zone investment is going to communities that are substantially more economically distressed than the rest of the country. This is why I continue to lead legislation -- such as -- Opportunity Zones Transparency, Extension, and Improvement Act -- to boost economic investment in these distressed communities."
- "The Tax Cuts and Jobs Act helped American families, small businesses, and resulted in a booming economy. As a committee and conference, we are committed to economic growth, opportunity and fiscal responsibility. And looking ahead to 2025, when some TCJA provisions set to expire, we need to ensure our tax code in this country encourages investment, job growth, and economic security for American working families."
DOWNLOAD VIDEO OF REP. KELLY'S OPENING STATEMENT HERE
WITNESS TESTIMONY EXCERPTS (as prepared for delivery)
"Congress should avoid the creation of new taxes, even if the stated goal is replacing existing
taxes," said Grover Norquist, President, Americans for Tax Reform. "The priority of Congress regarding tax policy must be ensuring the Tax Cuts and Jobs Act is made permanent."
"The United States faces a large long-term fiscal imbalance that will burden future generations
and that threatens long-term economic growth. A value-added tax (VAT) is an essential
component of a well-designed response to this challenge," said Alan Viard, Senior Fellow Emeritus at the American Enterprise Institute. "The United States should follow the lead of 170 other countries and territories by adding a VAT to the federal tax system. The VAT is economically similar, but administratively preferable, to a retail sales tax."
"What all true consumption taxes have in common is that they effectively exempt from tax the returns to saving and investment and impose taxes on private consumption, typically in a broad-based manner," said Alan Auerbach, Professor of Economics and Law, University of California Berkley.