Finance

Brady prepares backup plan to extend tax breaks

Cameron Lancaster

House Ways and Means Committee Chairman Kevin Brady (R-Texas) on Monday night offered legislation that would serve as a back-up in case a deal on a bigger bill to extend a host of expired and expiring tax breaks can’t be reached.

The proposal would renew dozens of tax provisions that expired at the end of 2014 through 2016. Brady said the House will consider the two-year bill “to ensure before we leave, those provisions are extended.” If Congress does not renew the expired provisions by the end of the year, the Internal Revenue Service could delay the start of the tax-filing season.

{mosads}Members of Congress and the White House have been trying to get a deal that would make some of the expired tax breaks permanent and would also cement expansions of tax credits for working families. The sticking points over a larger deal include the cost, which could be around $800 billion, whether the Child Tax Credit should be indexed to inflation, and whether the bill will include a delay of ObamaCare’s “Cadillac” tax and medical device tax.

Brady said that “negotiations continue” on the bigger deal. “There’s a reason why we’ve not been able to find permanence in the past, but I’m hopeful we’re able to bridge those,” he said. However, if the parties involved in the discussions maintain their positions, Congress will have engaged in “another wasted exercise that creates confusion among job creators and doesn’t get us to a more permanent tax code,” he added.

The Senate Finance Committee approved a two-year bill on the expired tax breaks earlier this year.

In addition to renewing tax breaks, Brady’s bill also includes provisions related to real estate investment trusts, Internal Revenue Service reforms and the U.S. Tax Court.

Updated at 10:33 p.m.

Tags Kevin Brady

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