–House Passes GOP Plan That Sets Framework, Timing For Tax Overhaul
–House Majority Leader Cantor: Bill ‘Paves The Way’ For Overhaul
–Democrats Say Bill Could Serve As ‘Trojan Horse’ To Advance Agenda
–Senate Finance Panel Passes $151 Tax Extenders Package

By John Shaw

WASHINGTON (MNI) – The House approved Thursday a Republican bill
that would create an expedited procedure for taking up and passing
comprehensive tax reform next year.

The Republican bill was passed by the House in a near party line
vote, 232 to 189.

It follows passage Wednesday of Republican legislation to renew all
Bush era tax cuts for another year. The House approved the GOP tax cut
extension bill on a 255 to 171 vote.

The bill requires the chairman of the House Ways and Means
Committee to introduce a tax overhaul bill by April 30 of next year.

The legislation declares that the tax overhaul bill should
consolidate the current individual tax brackets into no more than two
brackets of 10% and no greater than 25%. The bill should lower the
corporate tax rate to 25%, repeal the alternative minimum tax, and
ensure that revenue be no more than 19% of gross national product. It
also says the bill should shift the U.S. to territorial system from the
current worldwide system.

“We need tax reform,” House Majority Leader Eric Cantor said during
the debate, adding the House GOP bill “paves the way for comprehensive
tax reform” next year.

Democrats charged the bill is drafted in a deceptive way and would
allow Republicans to put almost anything in the bill which would be
considered on a fast-track basis.

In a statement filed with the Ways and Means Committee, the
Democrats on the panel said the bill could be used as “Trojan horse” for
the GOP’s legislative agenda. They said the bill could be used to
overhaul Medicare or repeal the 2010 health care law.

In a related matter, the Senate Finance Committee approved Thursday
a bill that would extend nearly 50 tax provisions that have either
expired or will expire at the end of this year. The provisions are often
called tax extenders because they are routinely extended.

The Senate Finance package was approved on an 19 to 5 vote. It
would cost $152 billion over a decade. House Speaker John Boehner said
Thursday that GOP leaders in the House will review the package.

** MNI Washington Bureau: (202) 371-2121 **

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