The House on August 2 passed the Pathway to Job Creation Through a Simpler, Fairer Tax Code Bill of 2012 (HR 6169 ), which would establish a fast-track process for House and Senate consideration of comprehensive tax reform in 2013. The bill, which lawmakers approved by a vote of 232 to 189, will be coupled with the Job Protection and Recession Prevention Bill of 2012 (HR 8 ).
Under HR 6169 , the chairman of the House Ways and Means Committee must introduce comprehensive tax reform legislation by April 30, 2013. The Joint Committee on Taxation must certify that the proposed legislation will consolidate income tax rates into two brackets of 10 percent and no higher than 25 percent. The legislation must also set corporate tax rates at 25 percent, repeal the alternative minimum tax, broaden the tax base and institute a territorial system of taxation. “Today’s vote signals that, by next spring, the Ways & Means Committee must pass—and the House must act on—tax reform that meets these pro-growth principles,” said House Speaker John Boehner, R-Ohio.
Democrats faulted the legislation because it does not spell out exactly how the lower tax rates would be offset. Rep. Sander Levin, D-Mich, ranking Ways and Means member, said the bill would allow tax reform legislation to be written in secret and escape the full scrutiny of the public.
By Stephen K. Cooper, CCH News Staff
Ways and Means Press Release: Camp Floor Statement on HR 6169, the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012
Ways and Means Press Release: Levin Floor Statement Opposing GOP Tax Rewrite for the Wealthy