House Ways and Means Committee Chairman Richard Neal (D-MA) has proposed a package to revive dozens of expired tax breaks through the end of 2020 but included a 1 percent increase to the corporate tax rate and an estate tax boost to help offset the cost.
Top Republican tax-writers have been calling for Neal to move a tax extenders package but said this week that his plan to raise taxes is a “non-starter.”
Congressional Democrats have criticized the 2017 tax law’s doubling of the estate tax exemption, claiming it only benefits the super wealthy. Along the same lines, Neal has characterized the GOP-led tax overhaul as benefitting corporations over the middle class.
Rep. Kevin Brady (R-TX) and Senate Finance Committee Chairman Charles Grassley (R-IA) released a joint statement this week after reading reports that Neal is proposing to raise taxes to help fund Democratic priorities like expanding both the Earned Income Tax Credit and the Child and Dependent Care Tax Credit.
“Raising taxes on American families and businesses would throw a wrench in this historically strong economy and destroy an untold number of jobs across the country,” Brady and Grassley said. “We hope that House Democrats instead choose to work with us to end business-as-usual as it concerns these temporary tax provisions and not use these provisions as leverage in unrelated tax policy disagreements.”
Neal reportedly is aiming for a June 20 markup of an extenders package and would then turn to negotiating with the Senate.