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Brady pledges imminent international tax reform bill

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Tax Hot Topics: International tax reform billHouse Ways and Means Committee Chair Kevin Brady, R-Texas, has pledged to immediately begin work on a full international reform bill and scheduled a hearing on the subject for Feb. 24.

Brady is picking up where former committee chair and current House Speaker Paul Ryan, R-Wis., left off. Ryan spent much of the past year trying to find common ground with Democrats on an international reform bill that would have paired a transition to a territorial system with an “innovation box,” and raised revenue through a one-time tax on repatriated earnings.

Democrats wanted to use some of the revenue for highway spending, but talks collapsed without a full bill being introduced. Democrats have since indicated they see little incentive in international reform without highway funding. But Brady appears committed to drafting and releasing a full bill with or without Democratic support.

While enactment of such an ambitious proposal is unlikely in an election year, a draft bill could become an important flash point for tax discussions on the campaign trail and help tee up tax reform efforts in 2017. Brady has also promised to draft a broader blueprint for comprehensive tax reform as part of his role heading Ryan’s tax reform task force. Ryan established six groups assigned with developing a pro-growth agenda, and Brady will lead the way on taxes.

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