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Brady makes the case for revenue-neutral tax reform

Brady makes the case for revenue-neutral tax reform
© Greg Nash

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyGrowing number of lawmakers test positive for COVID-19 after Capitol siege Overnight Health Care: US sets record for daily COVID-19 deaths with over 3,800 | Hospitals say vaccinations should be moving faster | Brazilian health officials say Chinese COVID vaccine 78 percent effective The Hill's Morning Report - A dark day as Trump embraces 'special' rioters MORE (R-Texas) made the case for revenue-neutral tax reform on Wednesday, following a report that some advisers to President Trump and lawmakers are potentially interested in enacting tax cuts that aren't offset.

"I believe, both the most pro-growth approach we can take, and the fiscally responsible approach we can take, is to break even with the budget, counting on just solid, verifiable economic growth," he said at a Financial Services Roundtable event.

Politico reported Wednesday that some Trump aides are questioning the need for tax reform to maintain current revenue levels. Sen. Rand PaulRandal (Rand) Howard PaulMcConnell about to school Trump on political power for the last time Legislatures boost security after insurrection, FBI warnings Former Missouri senator says backing Hawley was 'worst mistake of my life' MORE (R-Ky.) has also advocated for tax cuts that aren't paid for.

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A tax-reform bill that increases the deficit would contrast with goals expressed by GOP congressional leaders. Both House Speaker Paul RyanPaul Davis RyanRevising the pardon power — let the Speaker and Congress have voices Paul Ryan will attend Biden's inauguration COVID-19 relief bill: A promising first act for immigration reform MORE (R-Wis.) and Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellGraham calls on Schumer to hold vote to dismiss article of impeachment against Trump Rove: Chances of conviction rise if Giuliani represents Trump in Senate impeachment trial Boebert communications director resigns amid Capitol riot: report MORE (R-Ky.) have said they want tax reform to be revenue-neutral. A revenue-neutral bill would be easier to pass under budget reconciliation, which allows bills to clear the Senate with only 50 votes.

Trump's Treasury secretary nominee, Steven Mnuchin, has also said he thinks tax reform shouldn't increase the deficit.

Brady said lawmakers have been having "terrific discussions" with Trump's team about tax reform, and the revenue-neutrality issue is part of the discussion.

The House Republican blueprint that the Ways and Means Committee is working to turn into legislation is intended to be revenue-neutral after accounting for economic growth. Brady said that the plan would result in lost tax revenue in the early years of implementation but would make up for those losses later on, so it would break even within the 10-year budget window.

"After that, it creates significant revenue going forward, which helps us with our debt and deficits," he said.