Markup Day for GOP Tax Plan

Changes already are being made to the GOP's simplified tax plan.

Woodlands Republican Kevin Brady, chair of the House Ways and Means Committee, offered an amendment Monday to reduce the bill's cost and use a reduced cost-of-living adjustment instead of the old consumer price index.

“This bill is more than just fundamental reform,” Brady said during the first day of markups on the bill.  “With this bill, there will be real simplicity, real fairness and real freedom for every American.”

“According to independent estimates from the non-partisan Tax Foundation, the Tax Cuts and Jobs Act will lead to nearly four percent higher GDP over the long term, will increase wages by over three percent and boost after tax incomes by more than four.”

Massachusetts Democrat Richard Neal argues the bill still aims to boost the wealthy.

“I do not agree that enacting tax reform we should be giving more benefits to the more well off and well-connected with the hope that it might trickle down,” he said.

Neal also accused Republicans of throwing a big tax bill together behind closed doors and he called for a bipartisan effort on tax reform.

The markup process is expected to continue through Thursday.

Ways and Means Chairman Kevin Brady on Friday released a substitute amendment, or chairman's mark, to the tax overhaul bill his panel will begin to markup on Monday, but said he plans to offer another, more substantive amendment at the start of the markup.

The change, designed to conform the bill with the budget instruction, would require provisions that are indexed to inflation use the chained Consumer Price Index starting immediately rather than after five years of enactment.

Chained CPI costs less than the regular Consumer Price indexing, meaning the acceleration of its use in the tax overhaul should add some additional revenue to the budget score.

 Woodlands Congressman Kevin Brady joined Houston’s Morning News: