House Ways and Means Committee Chairman Kevin Brady said Tuesday that the tax writing committee should have a draft “tax reform 2.0” package addressing charitable contributions and retirement savings measures ready to circulate to House Republicans after the July 4 recess.
Speaking at an event held at The Washington Post called “Tax Reform in America: A Six-Month Report,” Brady, R-Texas, said that the “centerpiece” of a tax reform 2.0 proposal will address “permanency” for middle-class families and small businesses.
During July, Brady said, Ways and Means members will be “listening to our colleagues in the House about what they want to see in 2.0 and incorporating those changes,” adding that he anticipates a “legislative outline” to be released in early August with votes in the fall.
Brady continued that he doesn’t envision 2.0 “as one bill — I see it as a package of two, three or four approaches with permanency being one of them.”
There are retirement savings areas “that we didn’t get to in tax reform,” Brady said, noting measures in the House and Senate in this area will be considered.
“Fine-tuning and tweaks” to the tax code will also be considered concerning charitable contributions, he said. “What I do know is that charitable contributions, whether it’s to your local church or local university, expand when the economy grows, [but] they tend to contract when the economy is not doing well,” Brady said. “We’ve seen that for too long in the United States. In the end, the net will be very positive for organizations who depend upon the generosity of Americans.”
While the House will be moving forward with tax proposals this fall, Brady said timing in the Senate will be up to Senate Majority Leader Mitch McConnell, R-Ky.