House Ways & Means Committee Chair Rep. Jason Smith (R-MO) says his committee will propose a tax package by late May or in June. The package will reflect priorities discussed at the committee’s field hearings (so far, four have been held outside of Washington), and will prioritize “working families and small businesses.” Currently, this effort appears to be entirely Republican-generated and supported.

The emerging tax package—which is at the moment an initiative separate from the ongoing budget and debt limit debates—will focus on economic growth, Rep. Smith says. Among the issues he says the committee is examining are:

• Expiring 2017 tax cuts, including the section 199A 20 percent deduction for non-corporate business income.
• Estate tax (repeal or modification).
• Research & development.
• Business expensing rules.
• The deductibility of business interest paid.
• Child tax credit, with work requirements.
• Bonus depreciation.
• Repealing or amending the already-enacted $600 reporting threshold for third-party settlement organizations (for example, e-Bay, Venmo, Etsy, and Airbnb).
• International tax rules, with special focus on the global minimum tax.

So far not discussed (at least publicly) are issues related to making the package revenue-neutral (i.e., revenue-raising offsets). There is some consideration being given privately to limiting, but not entirely repealing, the green energy incentives included in the Inflation Reduction Act.

Prospects: It’s early days yet on this initiative. Chairman Smith shares the GOP Conference’s aversion to tax increases, but there are real issues with proposing a tax package that loses revenue. This is another initiative that NAIFA is watching very closely.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.