The House’s top tax writer formally introduced his proposal to overhaul the U.S. tax code on Thursday, just as lawmakers are drawing the 113th Congress to a close.
But the bill garnered little support, even among Camp’s fellow Republicans, despite many lawmakers insisting they want tax reform — underscoring the challenges that Washington will continue to face as it tries to revamp the tax system.
Speaker John BoehnerJohn BoehnerGOP rushes to vote without knowing full impact of healthcare plan Dem senator to reintroduce ‘buy American’ legislation GOP senators offer bill to require spending cuts with debt-limit hikes MORE (R-Ohio) had reserved the symbolically important H.R. 1 for Camp's tax bill, illustrating the general support Republicans have for tax reform.
Camp said Thursday that he hoped the bill’s introduction would help spur momentum for tax reform in the next Congress, when Rep. Paul RyanPaul RyanReport: Trump regrets backing health plan before pushing for tax reform Trump delivers ultimatum to GOP on ObamaCare repeal Dem senator to reintroduce ‘buy American’ legislation MORE (R-Wis.) will take over the Ways and Means gavel and Sen. Orrin HatchOrrin HatchOvernight Finance: US preps cases linking North Korea to Fed heist | GOP chair says Dodd-Frank a 2017 priority | Chamber pushes lawmakers on Trump's trade pick | Labor nominee faces Senate US Chamber urges quick vote on USTR nominee Lighthizer Live coverage: Day three of Supreme Court nominee hearing MORE (R-Utah) becomes Finance Committee chairman.
“At its core, the Tax Reform Act of 2014 is about making the tax code simpler and fairer for hardworking taxpayers,” Camp said in a statement. “This legislation makes the code more effective and efficient by getting rid of narrowly targeted provisions to lower tax rates across the board.”
Camp’s draft failed to gain steam in Congress in part because Republicans didn’t want to push too hard on slashing tax rates in an election year. But the proposal also showed the difficulties in revamping a tax code where many of the more popular tax breaks — like the deduction for home mortgage interest and charitable contributions — are also among the most expensive.
Plus, industries also fight to keep their favorite incentives in any reformed code, even as they push for the lower tax rates that would come from a tax overhaul.
Camp did make changes to some of those more popular tax breaks, like the mortgage interest deduction, and faced a backlash from industry, like when the financial services sector slammed a tax on large banks.
He was also unable to hit his goal of reducing the top tax rate to 25 percent, instead keeping a 35 percent rate on a small number of taxpayers.
Ryan has already said he’s learned from the problems Camp faced, and wants to implement “dynamic” scoring to ease the path for himself next year. The Joint Committee on Taxation said that Camp’s plan could raise anywhere from $50 billion to $700 billion in new revenue over the next decade, but Camp did not use that revenue to help lower rates.