The House Ways and Means Subcommittee on Select Revenue Measures has scheduled a hearing July 30 to study the macroeconomic effects of the tax reform discussion draft released earlier this year by Ways and Means Chairman Dave Camp (R-MI).
Subcommittee Chairman Pat Tiberi (R-OH) said the hearing will focus on the accuracy of dynamic scoring for tax reform, which attempts to forecast how the economy will respond to various changes in tax policy. When Camp released his tax reform proposal in February, the Joint Committee on Taxation conducted both a static and a dynamic evaluation of the plan. Under the static analysis, the plan was projected to reduce the deficit by $3 billion over a 10-year period. The dynamic analysis released by JCT projected the draft would increase economic output and employment over that same 10-year window. Tiberi said he is looking for recommendations on how dynamic analysis can strengthen the Camp plan.
“Fixing our broken tax code will strengthen the economy to help employers create more jobs and increase wages for American families,” Tiberi said. “Chairman Camp has worked hard to produce a tax reform draft that does just that. This hearing provides a good opportunity to hear economic analysis on how the draft achieves this goal and to learn more about actions the committee can take to improve the draft and the accuracy of our measurements.”
While Camp is term-limited as chairman of Ways and Means, committee members have strongly indicated they plan on pursuing his goal of comprehensive tax reform when the new Congress convenes in January. ASAE continues to meet with various offices on Capitol Hill to talk about specific provisions in the Camp discussion draft that would impact the revenue streams of associations and other tax-exempt organizations.